According to documents supporting the draft law on the State Budget for 2023, consulted today by Lusa, the Government estimates for the next year a GDP of 229.8 billion escudos (2,081 million euros), equivalent to a growth economic growth of 4.8% compared to 2022, while personnel expenses rose 5%.
This is an increase in nominal expenditure of 1,169 million escudos (10.6 million euros) compared to 2022, explained by the increases in lower salaries in the civil service, raising the heading of personnel expenses to the equivalent of 10 .6% of Cape Verdean GDP estimated for next year.
Government data indicate that Cape Verde had more than 22,000 civil servants in 2021, including public institutes and municipal administration.
The increase in personnel expenses is also justified by the reclassification of 438 teachers for the period from 2017 to 2020, by the conclusion of the implementation of the Armed Forces statutes, by the “resumption of ongoing recruitments and new recruitments for different categories and structures of the State”. ”, for the conclusion of the recruitment of 138 agents of the National Police and 25 agents of the Judiciary Police, among others.
The Cape Verdean prime minister announced on October 5 the increase in the national minimum wage from 13,000 to 14,000 escudos (117 to 126 euros) in 2023 and salary increases from 1 to 3.5% for civil servants and pensioners with lower incomes. .
“It is a budget that is truly geared towards people and with a human face”, said Ulisses Correia e Silva, in a statement to the country from the Government Palace, in Praia, to present the main measures and priorities of the State Budget proposal for 2023
“The lowest salaries and pensions will have greater increases”, said the prime minister, guaranteeing that the budget proposal for 2023, which “will still be a difficult and challenging year”, will “prioritize investment in the welfare state”.
Contingency to crises, protection of families and preparing the country for the future were the three priorities of the State Budget for 2023 pointed out by Ulisses Correia e Silva in his speech, in which he also highlighted the “trust” of international partners and investors in “ good governance” of the country.
“Despite the difficulty, we will overcome the challenges”, he said.
After the intervention of Ulisses Correia e Silva, the Deputy Prime Minister and Minister of Finance, Olavo Correia, said that the Government “only did not go further” in increasing the national minimum wage “due to the situation of uncertainty” that is being experienced. at a global level, admitting that the measure may still undergo a further update during the next year depending on the evolution of the international situation.
In addition, he added, salaries in the civil service and pensions of pensioners of the National Institute of Social Security (INPS) of 15,000 to 33,000 escudos (135 to 296 euros) per month will increase by 3.5% in 2023, above 33,000 escudos and up to 51,000 escudos (296 to 458 euros) will increase by 2% and from 51,000 escudos to 69,000 escudos (458 to 619 euros) will increase by 1%.
“We must protect lower incomes directly at this stage and higher incomes are protected indirectly through the measures we are taking to stop the rampant rise in prices”, he clarified.
The archipelago faces a deep economic and financial crisis, due to the sharp drop in tourist demand – a sector that guarantees 25% of the archipelago’s Gross Domestic Product (GDP) – since March 2020, due to the covid-19 pandemic.
For 2022, due to the economic consequences of the war in Ukraine, namely the rise in prices, the Cape Verdean government lowered its growth forecast from 6% to 4%.
Prices in Cape Verde increased by 1.9% in 2021, according to data from the National Statistics Institute (INE) and the Government predicts an inflation of 8% this year, the highest in the last 25 years.
PVJ // VAM
