Senegal has revised its 2025 budget deficit upward to 7.82% of GDP, up from the previously forecasted 7.08%.
The draft finance bill, reviewed by Reuters, attributes the change to a decline in revenue projections and a downward revision of nominal GDP.
“This development is mainly explained by a decline in budget revenues combined with a downward revision of the nominal GDP,” the bill stated.
Economic growth, initially projected at 8.8%, is now expected to reach only 8.0% in 2025, despite the recent launch of oil and gas production.
The adjustment reflects growing pressure on the country’s public finances amid global economic headwinds and domestic fiscal constraints.
A government audit last September revealed budget deficits exceeding 10% between 2019 and 2023—more than double the amounts officially reported.
This revelation sparked concerns about transparency and fiscal credibility under the previous administration.
In response, the International Monetary Fund suspended disbursements to Senegal last year, citing misreported debt and deficit figures.
The IMF has since made clear that discussions on a new financial arrangement will remain on hold until those discrepancies are resolved.
As Senegal navigates this fiscal turbulence, the nation’s economic outlook hangs in the balance—between newfound oil wealth and inherited budgetary burdens.