Senegal’s finance committee to review revised budget crucial for IMF deal
Senegal's National Assembly finance committee is set to review a revised budget crucial for securing a new $2.2 billion IMF programme. Finance Minister Cheikh Diba requested the review to avoid political deadlock and economic harm. The budget was initially rejected by the majority Pastef party. The IMF highlights Senegal's debt at 132% of GDP due to misreported borrowing. The review is key to stabilizing public finances amid social tensions and a recent general strike.
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Senegal’s finance committee in the National Assembly will review a revised budget essential to finalizing a new programme with the International Monetary Fund (IMF).
Finance Minister Cheikh Diba asked the committee to reconsider the draft budget, which was previously rejected by the Pastef party holding a parliamentary majority. Diba emphasized the need for responsibility and dialogue to avoid institutional deadlock that could harm the country.
Pastef leader and National Assembly speaker Ousmane Sonko agreed to the request, promising to organize committee proceedings and the next plenary session, assuring a calm and clear vote.
The budget review is critical as Senegal grapples with a debt burden reaching 132% of GDP by the end of 2024, partly due to billions of dollars in misreported borrowing under the previous administration.
Prime Minister Ahmadou Al Aminou Mohamed urged opposition members not to paralyze the country by blocking the budget, calling for dialogue amid economic crisis.
Dakar aims to secure a 36-month, $2.2 billion IMF debt programme to stabilize public finances. This budget dispute occurs amid social tensions, high youth unemployment, a cost-of-living crisis, and a recent three-day general strike.