The Senegalese government and the Pastef-dominated parliamentary majority have yet to reach a compromise on the 2026 revised budget. The text was rejected for the second time in committee on Friday. A new vote in plenary session is expected on Tuesday, amidst high tensions over the country's public finances and debt. The budget is crucial for Senegal's finances, which are facing a severe debt crisis.
The negotiations did not lead to a rapprochement between the parties. The draft rectified finance bill was sent back to committee on October 27 by the National Assembly to try to find an agreement. However, it was rejected again on Friday by the Finance committee, with the majority voting against it. In a statement, the Pastef parliamentary group described the government's responses as "insufficient and unsatisfactory".
The disagreements between the government and Pastef center on several key issues, including the budget deficit, debt, protection of purchasing power, and public investments. Pastef also denounced the executive's refusal to transmit certain documents considered essential. The party's leader, Ousmane Sonko, has been at odds with President Bassirou Diomaye Faye, adding to the tensions.
The 2026 revised budget is closely linked to discussions with the International Monetary Fund (IMF). In September, the IMF announced a preliminary agreement with Dakar on a new $2.2 billion aid program over 36 months. However, its definitive approval is conditional on several commitments, including the adoption of the revised budget.
The National Assembly is set to convene in plenary session on Tuesday to examine the text again, which could face a third rejection. Pastef has 130 seats out of 165 in parliament, giving it a decisive position in the vote. The party's stance will be crucial in determining the budget's fate.
The blockage occurs in a context of persistent tensions between President Faye and Sonko. The Prime Minister, Ahmadou Al Aminou Mohamed Lô, called on the opposition to adopt the revised budget on October 26, warning that the country could not be "blocked" by this disagreement.
The debt crisis in Senegal is severe, with public debt estimated at 132% of GDP at the end of 2024. The adoption of the revised budget is essential to address this crisis and restore the country's financial stability. The outcome of the vote on Tuesday will have significant implications for Senegal's economic future.
Key points
- The 2026 revised budget is crucial for Senegal's finances, which are facing a severe debt crisis.
- The disagreements between the government and Pastef center on key issues such as budget deficit and debt.
- The IMF's approval of a $2.2 billion aid program is conditional on the adoption of the revised budget.
