Senegal: Latest budget report reveals lasting pressure on public finances
Senegal’s latest quarterly budget execution report lays bare the growing strain on its public finances, with soaring spending and a stubborn deficit, amid the country’s serious public debt crisis.
At the end of September, the state’s ordinary expenses amounted to about 3,220 billion CFA francs (about €4.9 billion), representing over 72% of the planned budget.
At the same time, the budget deficit stood at 4.88% of the GDP, a level below the annual target of 7.82%, but still well above the regional convergence criterion of 3%.
Senegal’s finance ministry described the country’s budget execution as “under control overall.”
But the financial environment remains difficult for Senegal, with international agencies’ recent downgrade of its sovereign credit rating.
The government has also failed to reach an agreement with the International Monetary Fund (IMF).
The institution suspended a $1.8 billion (€1.5 billion) loan to Senegal in May 2024.
The Senegalese economy is struggling to overcome its lasting public debt crisis. Earlier this year, the IMF uncovered significant inaccuracies in Senegal’s budget declarations from 2019 to 2023, particularly regarding the underreporting of the deficit and public debt.
By Rédaction Africanews
