Senegal: 2026 deficit rises to 7.6%, investment drops by 555 billion FCFA
The revised finance bill lowers revenue projections, raises energy subsidies to 790.3 billion FCFA, and cuts planned investments by 555 billion.
Senegal has significantly revised its 2026 budget. The deficit is now projected at 1,735.2 billion FCFA, or 7.6% of GDP, up from the initial estimate of 5.4%. Submitted to the National Assembly on September 18, the revised finance bill also cuts investment spending by approximately 555 billion FCFA.
Total revenue has been adjusted down to 5,848.7 billion FCFA, compared to the initial figure of 6,188.8 billion, a decrease of 340.1 billion. At the same time, expenditures are set to increase by 150 billion, reaching 7,583.9 billion FCFA, which brings the deficit to 1,735.2 billion.
The energy shock is heavily influencing this adjustment. Subsidies have surged from 250 billion to 790.3 billion FCFA, an increase of 540.3 billion. The bill attributes this rise to the escalating cost of energy and an unfavorable external context, while the government continues to maintain several priority social expenditures.
To absorb these constraints, investment has become the primary adjustment variable. The affected credits have decreased by a total of 555 billion FCFA. Meanwhile, interest and commissions on public debt have risen to 1,285.2 billion, compared to the 1,190.6 billion initially projected in the budget.
Tax revenues have also been revised down by 453.3 billion FCFA. The expected yield from the Economic and Social Recovery Plan has dropped from 762.9 billion to 311.5 billion, particularly because taxation on gambling is now expected to yield only 120 billion, down from the initially hoped-for 300 billion.
The overall financing need has now reached 6,774.2 billion FCFA. This pressure comes as the IMF supports Senegal’s debt treatment plan, initiated by Dakar to restore the viability of its public finances and ease repayment constraints.
Additionally, the government launched its second public savings call for 2026 on September 17, aiming to raise 200 billion FCFA. Subscriptions remain open until October 8, and the funds are intended to contribute to financing the budget, particularly for investment expenditures.
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