Administrative Expenditure Patterns

Administrative Expenditure Patterns

27. 
    The Ministry of Finance and Public Administration is clearly dominant in expenditure, representing on average 43 percent of the total. A significant part of these expenditures are related to restructuring costs from privatizations, payment of oil subsidies, payment of arrears, and interest rate payments.
    
28. 
    From 2002–06, the Ministries of Education and Health accounted for, on average, 24 percent and 8 percent, respectively, of total recurrent expenditures. These rates support the assertion that growth and poverty reduction had been national priorities even before the adoption of GPRSP-1-I in 2004. However, most of these recurrent expenditures consist of salaries and Public Administration benefits. An evaluation covering several years showed that more than 60 percent of the total annual budget for each sector is devoted to salaries and other benefits.
    
29. 
    The expenditure level of the Ministry of Internal Administration, estimated at 6.4 percent of total expenditure for 2007, has increased over the last few years. The increase results from new recruitments for security. Concerns with security related to narcotics trafficking have risen in the past few years. To prevent itself from being transformed into a golden highway for drug routes and other types of traffic, Cape Verde has hired more security staff to strengthen the control of the maritime and air frontiers.¹⁶
    

Table 2.18: Organic Classification of Executed Expenditures, 2002–07 (% of GDP)