Senegal’s Revised Budget Reveals Widening Fiscal Deficit Amid Data Scandal

Edited By : Widad WAHBI

Senegal’s newly amended draft budget for 2025 projects a fiscal deficit of 7.82% of GDP—an increase from the originally forecasted 7.08%. The government attributes this deterioration to lower-than-expected revenues, global economic pressures, and internal policy revisions.

In parallel, the country’s economic growth forecast has been downgraded. While the original projections anticipated 8.85% growth in 2025, new estimates suggest a reduced rate of 8%, reflecting growing fiscal constraints and instability.

The revision comes against a backdrop of mounting scrutiny over Senegal’s public finances. A September 2024 audit by the national Court of Accounts revealed that the budget deficit between 2019 and 2023 had exceeded 10% of GDP—double the figures previously reported by the former administration. The report accused previous officials of intentionally manipulating data provided to international donors and development partners.

Due to these discrepancies, the International Monetary Fund (IMF) suspended funding disbursements under its current program with Senegal in late 2024, pending resolution of the issues surrounding debt reporting and fiscal transparency. The IMF confirmed that no new agreement would be negotiated until these matters are clarified.

In February 2025, Prime Minister Ousmane Sonko publicly confirmed that the Court of Accounts had uncovered widespread financial misreporting. According to the investigation, public debt in 2023 stood at a staggering 99.67% of GDP—far higher than what was declared by the previous administration.

This revelation has had tangible economic consequences. Earlier this year, credit rating agency Moody’s downgraded Senegal’s rating from B1 to B3, placing the country’s debt in the high-risk category. Economists warn that the downgrade could undermine investor confidence and hinder the financing of critical infrastructure and development projects.

Although Senegal has recently launched natural gas production from the Grand Tortue Ahmeyim field, a joint venture with Mauritania, the country remains dependent on external funding sources—particularly from the IMF, which remains on hold.

Until Senegal resolves the credibility crisis over its fiscal data, the suspension of international financial support is expected to persist, potentially slowing down economic recovery and deepening investor wariness.