APR Sénégal: LFR 2026 Budget Deficit Projected to Reach 7.6%

• The Alliance for the Republic (APR) criticized internal divisions within the majority regarding the Rectified Finance Law (LFR) 2026.
• The LFR 2026 proposes a budget deficit increase from 5.4% to 7.6% of GDP and a growth reduction from 5% to 2.7%.
• Public investments are projected to decrease by 555 billion FCFA, raising fears of project slowdowns and business cash flow issues.
• The APR questioned a significant increase in energy subsidies from 250 billion to 790.3 billion FCFA amidst ongoing energy concerns.
• Deputy Ismaïla Diallo warned that the LFR 2026 would be rejected again if parliamentary conditions are not met.

The APR has raised serious concerns that the proposed budget revisions within the Loi de finances rectificative 2026 Sénégal will significantly undermine initial economic projections.

The Alliance for the Republic (APR), the party formerly led by Macky Sall, has voiced strong criticism regarding the proposed Rectified Finance Law (LFR) 2026 for Sénégal, highlighting significant internal disagreements within the ruling majority. This critique follows the initial rejection of the draft legislation by a parliamentary commission, which subsequently led to its return to the Commission des finances on October 27 for further deliberations. The APR, in a press conference held on Wednesday, October 28, and reported by Seneplus, characterized these events as indicative of a "cacophony" within the majority's ranks.

While acknowledging the inherent right of deputies to engage in debate, propose amendments, or even reject legislative texts, the APR expressed bewilderment at the evident divergences among parliamentarians who ostensibly share a unified political agenda. The party has formally requested that the government provide comprehensive justifications for its budgetary decisions and clearly outline the anticipated repercussions for both businesses and households across Sénégal. This demand underscores a call for greater transparency and accountability in the management of the nation's finances.

The APR has raised serious concerns that the proposed budget revisions within the Loi de finances rectificative 2026 Sénégal will significantly undermine initial economic projections. According to the party's analysis, projected government revenues are set to decrease by 340.1 billion FCFA, while expenditures are slated to increase by 150 billion FCFA. These adjustments are expected to push the nation's budget deficit from an initial forecast of 5.4% to a substantially higher 7.6% of the Gross Domestic Product (GDP). Concurrently, the anticipated economic growth rate for Sénégal is projected to fall from 5% to a mere 2.7%.

Furthermore, the revised budget indicates a substantial reduction in public investments, amounting to 555 billion FCFA. The APR has demanded a thorough explanation for this fiscal deterioration and a clear articulation of measures intended to mitigate its adverse effects. The party specifically fears a potential slowdown in ongoing public works, the postponement of crucial investments, heightened cash flow pressures for businesses, and an increased risk to employment stability across various sectors. The substantial sum of nearly 1,956 billion FCFA in domestic arrears, as acknowledged by the government, further exacerbates these concerns, prompting the APR to advocate for a defined payment schedule for recognized and due debts, with particular emphasis on supporting small and medium-sized enterprises (SMEs).

The financial requirements for the Senegalese state in 2026 are projected to reach an estimated 6,774.2 billion FCFA, with a significant portion—over 4,500 billion FCFA—allocated towards the amortization of public debt. The APR has called for detailed clarifications regarding the mechanisms for financing this substantial budget and the nature of ongoing discussions with the International Monetary Fund (IMF) concerning Sénégal's public debt and broader budgetary commitments. This demand highlights a desire for greater transparency in the nation's debt management strategies.

The legislative process surrounding the Loi de finances rectificative 2026 Sénégal remains fraught with tension following its initial rejection and subsequent referral back to the Commission des finances. Deputy Ismaïla Diallo issued a clear warning on October 27, stating that the proposed LFR 2026 would face another rejection if the conditions stipulated by parliamentarians were not adequately addressed by the government. This firm stance underscores the depth of the disagreement and the potential for continued legislative deadlock.

The APR Macky Sall critique budget reflects a broader concern about the coherence and stability of the nation's financial planning. The party's questioning of the majority's internal divisions, despite a shared political platform, suggests a significant challenge to the government's ability to pass critical financial legislation. The outcome of these ongoing discussions within the Commission des finances Sénégal LFR will be crucial in determining the nation's fiscal trajectory and its ability to address pressing economic challenges in the coming year.

Lawyers advising businesses in Senegal, particularly those engaged in public contracts or awaiting government payments, should note the increased risk of payment delays and reduced public spending due to the revised 2026 budget. Compliance officers should assess potential impacts on financial stability and contractual obligations, especially for SMEs facing payment arrears.

Source: Original reporting via Seneplus.