Reference year - 2014
Cabo Verde has never been evaluated in the Open Budget Survey. Therefore, it was important to personalize the Survey in the areas of budget oversight and transparency in work sessions with the Court of Auditors, parliament and Ministry of Finance, as well as using economical indicators gathered by international organisations, such as the World Bank and the United Nations Economic Committee (UNECA).
Cabo Verde has an independent Court of Auditors. The parliamentary committee responsible for budget oversight is the Committee of Planning and Budget, and there are no specialized cabinets or units for budget and public finances oversight. In addition, there is no civil society organization involved in the civic monitoring of the budget process or that collaborates with the parliament to improve the budget and public expenditure oversight.
Despite the budget oversight and transparency in Cabo Verde, there are certain challenges to be taken into account:
Public Expenditure and Budget reporting:
- The quality and comprehensiveness of fiscal reports (Quarterly Interim Accounts) need to be improved, particularly with respect to financial assets and public debt.
- The mid-term evaluation is not made public but is produced by the MF for internal purposes.
- The end-of-year report, General State Account (CGE) is made public 24 months after the reference year.
- The executive does not make public the reports on the implementation of SAI recommendations.
External oversight and audit
- The legal framework is being reviewed to align SAIs' attributions and competencies with best practices and International Standards on Auditing (ISSAI).
- External control and oversight of the budget process remain at the weakest points regarding Public Financial Management System.
- External audit capacity remains weak, particularly with regard to local public authorities (municipalities).
- Late submission of end-of-year reports by the executive (over 2 years) is affecting the deadline for submission of ISC's audit report.
- The audit report is distributed widely and proactively, however SAI do not produce a user-friendly summary of the report.
- The executive sets the ISC budget, but the funds are not sufficient to enable SAIs to carry out a more ambitious audit agenda. In addition, the legal framework is not sufficiently clear as regards the scope of ISC audits.
Parliamentary budget and expenditure oversight
- The Parliament has a very limited capacity to amend the executive's budget proposal. The executive can transfer funds between units and budget lines without the prior approval of Parliament. This does not apply to supplementary funds which require prior approval by Parliament in order to authorize expenditure.
- The Parliament needs to update ICT systems in order to increase efficiency in the legislative process. It is planned to customize the BUNGENI system.
- There is no formal legislative debate on macroeconomics and budgetary assumptions prior to the presentation of the Executive Budget Proposal.
- The Parliament receives the Budget Proposal less than 3 months before the start of the fiscal year.
- The Parliament does not have a specialized office to support the committees with an analysis of the budget and expenditure. Parliament does not have the resources or practice in using external capacity to produce budget and expenditure analysis.
Public participation in the budgetary process (including auditing) and parliamentary oversight:
- There are no civil society organizations working in the area of budgetary transparency and external control. However, both SAIs and the specific context of Cabo Verde allow good financial governance. In recent years the Court of Auditors has been considerably improving its performance and efficiency due to consistent support and technical assistance from development partners, in particular from UNDP and EU, but also due to bilateral cooperation with the Court of Auditors of Portugal and Brazil. The Parliament does not have much assistance from other partners, particularly in the area of budget oversight. The involvement of the public in budget processes, external control and legislative scrutiny is very limited and almost non-existent in Cabo Verde.