Senegal Committee Plans Budget Review for IMF Deal

Senegal’s National Assembly finance committee is set to reconsider a revised 2026 budget rejected by lawmakers from the ruling Pastef party, after Finance Minister Cheikh Diba urged renewed debate and Assembly President Ousmane Sonko agreed to refer it back. Approval is important to negotiations for a proposed 36-month, $2.2 billion IMF program intended to stabilize public finances. Senegal’s debt reached 132% of GDP by the end of 2024, following the discovery of billions of dollars in previously unreported borrowing by the previous administration. The revised budget lowers projected real growth to 2.7% from about 5% and raises the projected deficit to 7.6% of GDP from 5.4%; planned spending cuts have also drawn Pastef objections over effects on health and education. The dispute unfolds amid high youth unemployment and cost-of-living pressures, with government officials urging dialogue to avoid political paralysis.