Senegalese lawmakers reject revised budget key to new IMF deal

Senegalese lawmakers on Friday rejected for a second time a revised budget that is crucial to securing a new programme with the International Monetary Fund (IMF), according to a statement from the ruling party, PASTEF.

The finance committee of Senegal’s National Assembly had said last Tuesday that it would review the revised budget, which it had initially rejected.

PASTEF cited a lack of budgetary transparency, ineffective cost-of-living measures and the government’s refusal to provide key documents or justify special funds as reasons for the rejection.

The deadlock could derail Senegal’s hopes of securing a board vote on a $2.2 billion, three-year IMF programme as early as next month.

Senegal has been grappling with a heavy debt burden, which had reached 132 per cent of gross domestic product by the end of 2024, according to IMF figures, after the government discovered billions of dollars in misreported borrowing by the previous administration.

The amended 2026 budget cuts projected real GDP growth to 2.7 per cent from about 5 per cent and widens the fiscal deficit to 7.6 per cent of GDP from 5.4 per cent.

Credit: Reuters