Senegal: IMF calls for immediate reforms to address budget irregularities

An International Monetary Fund delegation, headed by Edward Gemayel, traveled to Senegal from March 18 to 26 to assess the Audit Office's report published on February 12. In light of these findings, the IMF recommends urgent reforms to strengthen transparency and control of public finances.

The IMF determined that the average budget deficit was underestimated by 5.6 percentage points of GDP, while the central government debt increased from 74.4% to 99.7% of GDP by 2023.

The audit also pointed out undisclosed liabilities, including concealed borrowings amounting to 25.3 percentage points of GDP.

This report uncovered significant inaccuracies in Senegal's budget declarations from 2019 to 2023, particularly regarding the underreporting of the deficit and public debt.

To tackle these challenges, the IMF emphasized the importance of enhancing budget oversight and ensuring public financial transparency.

Proposed actions include streamlining tax exemptions and cutting back on expensive energy subsidies to stabilize public finances.

Senegal's economy remained robust in 2024, with GDP growth projected at 6% and inflation low at 0.8%.

However, the budget deficit rose to 11.7% of GDP, and government debt climbed to 105.7% of GDP by year-end.