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MAP - Développement énergétique : L’ONEE, le GSEP et l’UM6P scellent un partenariat pour la promotion de l’excellence académique
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MAP - La formation à la gestion culturelle et matérielle au menu du Festival 'Ciné-université' de Casablanca
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NNA - جمعية حماية الطبيعة في لبنان: تنبيه من خبير نسور في إستونيا بعد توقف طائر لقلق أسود عن ارسال بيانات قرب كفرسلوان
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MAP - Inwi et 2M lancent le talent show 'The ONE numéro 1 du web'
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NNA - وزارة الصحة : 603 اصابات جديدة و 8 حالات وفاة
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MAP - Le 3ème Sommet européen des entrepreneurs kitesurfeurs du 24 au 28 septembre à Dakhla (portail)
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NNA - Launch of 'Karama-Beirut Human Rights Film Festival' –5th Edition in cooperation with the UN and Czech Embassy
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MAP - Bern: Swiss-African Parliamentary Friendship Group Praises Moroccan Experience in Sustainable Development
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MAP - EBRD, EU and GCF Partner with Bank of Africa BMCE Group to Fight Global Warming in Morocco
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CNA - Cyprus aims to boost EV sales to 25% of total car sales and 1,000 charging points, Minister says
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Lusa - Business News - Portugal: Stock market closes with PSI20 index off 0.6% at 5,424 in line
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Lusa - Business News - Angola: Eni, ANPG announce start of oil production at Cabaça
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Lusa - Business News - Portugal: Madeira's tourism sector 'recovering well' - regional government
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Lusa - Business News - CPLP: Proposal to UN for coalition to promote sustainable food systems
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Lusa - Business News - Mozambique: Success of Rwandan troops in Cabo Delgado may weaken Nyusi's position - consultants
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Lusa - Business News - Portugal: TAP has processed 98% of reimbursements for flights cancelled due to pandemic
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Lusa - Business News - Portugal: Olive oil production 2021/2022 set to beat record - growers
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CNA - CoE Development Bank approves new loan to Cyprus for school buildings and sports facilities
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Lusa - Business News - Cab oVerde: Venezuela president reiterates 'illegality' of detention of envoy
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Lusa - Business News - Cabo Verde: Parliament debates amending budget tabled due to continued crisis




Praia, July.28,2021.(Lusa) - Cabo Verde's parliament on Wednesday began its debate on a proposed amending budget that the government says is necessary due to the crisis caused by the lack of recovery in tourism demand, and which is based on a downgraded forecast for economic growth for this year.
The legislation that the government is tabling in this, the last ordinary session of parliament before the holidays, is based n projected growth in gross domestic of between 3.0% and 5.5%. The budget currently in force pencilled in growth of between 6.8% and 8.5%, but this recovery has been undermined by delays to the recovery of tourism, due to continued travel restrictions now expected in the second half of the year, to contain the Covid-19 pandemic.
The government has also increased its forecast for public sector borrowing for this year, which will now be 13.7% of GDP, according to the proposed amending budget, which is to be voted on on Thursday.
According to the deputy prime minister, Olavo Correia, , who is also finance minister, the crisis in the archipelago due to the slump in tourism demand "is greater than previously thought" and "requires new accounts", so justifying a revision of the 2021 state budget - as happened a year ago, due to the pandemic.
"The tourists have not come," Correia said. "Tax revenue is below projected, tThe economy has grown less than forecast, support for families and businesses is still needed."
According to the supporting documents for the amending budget, the government now projects a public sector deficit of 24.008 billion escudos (€217.4 million). This is to be financed by issuing debt as well as an increase in transfers and donations, which the government estimates at 13.7% of GDP, against the deficit foreseen in the existing budget, of 18.025 billion, equivalent to 9.3%.
In 2020, the public sector budget deficit was 9.1% of GDP and in 2019, before the economic crisis caused by the pandemic, the archipelago had a budget surplus of 2.4% of GDP, according to government data.
The draft amending budget also identifies a shortfall of funding of 11.492 billion escudos compared to the budget in force, due to the drop in tax revenue. Measures to overcome this difference are indicated, namely through domestic borrowing, in the amount of 2.930 billion, spending restraint, such as cuts of 40% in state advertising, 50% in travel and overnight stays, and 100% in funding for works that were planned to be launched, and the "suspension of all public recruitment competitions and other measures to contain personnel expenditure", assessed in total at 2.718 billion, among others.
Before the pandemic, tourism generated about 25% of Cabo Vede's GDP, with a record 819,000 tourists visiting in 2019, but travel restrictions due to the Covid-19 pandemic have caused a 70% drop in demand from abroad.
In the first quarter of this year the archipelago received about 12,000 tourists, mainly from Portugal, when in the same period of last year 189,110 had arrived. Demand this year is expected to be at no more than 2005 levels, due to continued restrictions, according to the draft amending budget.
In the document, the government states that the country is going through the "biggest economic, financial and budgetary crisis" in its history, due to the pandemic, thus justifying a second amending budget, following last year's.
As part of the 2021 state budget in force, the government forecasted that this year would see a level of tourism demand similar to that of 2011, "but given current data, the forecast is revised to the levels recorded in 2005.
That would mean Cabo Verde receiving just over 300,000 tourists this year, when before the pandemic the goal for 2021 was over 1 million. Last year, the archipelago received around 200,000 tourists, mainly in the first quarter, before the pandemic set in.
The amending budget foresees around 78 billion escudos in spending, up 0.1% on the budget currently in force. It forecasts total public indebtedness of 23 billion at the end of the year, or 158.6% of GDP.
The vote on the legislation is due to take place on Thursday.
On Friday, the last day of the session, the prime minister, Ulisses Correia e Silva, is to return to the assembly for the annual debate on the state of the nation, which closes the parliamentary year.

PVJ/ARO // ARO.
Lusa


Agency : LUSA

Date : 2021-07-29 10:09:00







 

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