In Senegal, the debate on public finances turns into institutional deadlock

The Senegalese government faces a setback as the parliamentary majority led by Pastef rejected the revised budget for 2026 for the third time. This budget is crucial for securing a $2.2 billion aid package from the IMF, contingent on meeting specific fiscal policies. The revised budget reflects adjustments from a preliminary agreement with the IMF, following a two-year suspension of their program. Senegal is grappling with a significant public debt, exacerbated during Macky Sall's presidency, which reached 132% of GDP by the end of 2024. The IMF is closely monitoring the budget discussions, expecting a debt treatment plan in exchange for aid.