Senegal Budget Deficit Set at 4.7% Next Year
Senegal's draft 2027 budget sets a deficit of US$2.3 billion, or 4.7% of output, down from 7.6% in 2026, while debt interest eats almost all of it. The post Senegal Budget Deficit Set at 4.7% Next Year appeared first on The Rio Times .
Senegal's budget deficit is projected to shrink to 4.7% of the country's economic output in 2027, down from 7.6% in the previous year, according to a draft bill before the National Assembly. The total deficit is estimated at FCFA 1,351.7 billion (approximately US$2.3 billion), as opposed to FCFA 1,735.2 billion (about US$3.0 billion) in 2026.
The figures, shared by Dakaractu, Seneweb, and Le Soleil, are based on projected revenue of FCFA 6,012.1 billion (around US$10.2 billion) and spending of FCFA 7,363.7 billion (about US$12.6 billion) in 2027. The reduction in the deficit is mainly due to spending cuts, rather than an increase in government revenue. Key areas of expenditure reduction include energy subsidies and interest payments on debt, which together account for nearly the entire budget deficit.
The finance sector expects additional budget support of around FCFA 800 billion (about US$1.4 billion) in 2027, contingent on addressing previous debt reporting issues. The draft bill aims to secure concessional financing from international institutions to help cover the budget gap.
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