Sénégal: Projet Loi Finances Rectificative 2026 Projects 7.6% Deficit

• Senegal's Projet de Loi de Finances Rectificative (PLFR) for 2026, presented on September 18, 2026, revises the budget deficit from 5.4% to 7.6% of GDP, totaling 1,735.2 billion FCFA.
• General budget revenues are projected to decrease by 5.5% (340.1 billion FCFA), while expenditures are set to increase by 2% (150 billion FCFA).
• The government justifies these adjustments by a degraded economic context, including a reduced national growth forecast of 2.7% and a downward global growth revision by the IMF.
• Key spending increases include energy subsidies, which rise from 250 billion FCFA to 790.3 billion FCFA, and debt interest payments, which increase to 1,285.2 billion FCFA.
• These increases are partly offset by significant cuts in state-executed investments, with internal resource-funded investments decreasing by 41.4% and external loans by 19.4%.

The deficit is now estimated to reach 7.6% of GDP, a notable rise from the initial 5.4% outlined in the original finance law (LFI, law n°2025-19 of December 22, 2025).

Senegal's National Assembly received the Projet de Loi de Finances Rectificative (PLFR) for 2026 on Friday, September 18, 2026, indicating a significant adjustment to the nation's fiscal outlook. This revised finance bill, presented under Article 47 of the Organic Law on Finance Laws (LOLF Sénégal article 47), projects a substantial increase in the budget deficit. The deficit is now estimated to reach 7.6% of GDP, a notable rise from the initial 5.4% outlined in the original finance law (LFI, law n°2025-19 of December 22, 2025).

In absolute terms, the Déficit budgétaire Sénégal 2026 is set to hit 1,735.2 billion FCFA, based on an estimated GDP of 22,861.2 billion FCFA. This recalibration reflects a challenging economic environment, with the government citing a degraded context and a downward revision of growth forecasts. The national growth projection has been lowered to 2.7%, a 2.3 percentage point reduction from earlier estimates. Furthermore, the International Monetary Fund's (IMF) global growth forecast was also revised downwards, from 3.3% to 3.0%, contributing to the need for this Budget Sénégal 2026 révisé.

The revised projections show a decrease in general budget revenues, falling by 340.1 billion FCFA (5.5%) from 6,188.8 billion FCFA in the LFI to 5,848.7 billion FCFA. Concurrently, expenditures are slated to increase by 150 billion FCFA (2%), moving from 7,433.9 billion FCFA to 7,583.9 billion FCFA. These shifts underscore the government's response to evolving economic realities, necessitating a comprehensive review of the nation's financial planning for the upcoming year.

The Projet de Loi de Finances Rectificative 2026 reveals significant reallocations in public spending, particularly impacting subsidies and investment. A major contributor to the increased expenditure is the energy subsidy, which has surged from 250 billion FCFA to 790.3 billion FCFA. This represents 3.5% of the GDP, a substantial increase from the 1.1% initially allocated in the LFI. Interest payments on the Dette publique Sénégal 2026 are also set to rise, climbing from 1,190.6 billion FCFA to 1,285.2 billion FCFA. Personnel expenses are fixed at 1,532.8 billion FCFA, while spending on goods, services, and current transfers will reach 2,185 billion FCFA, up from 1,650 billion FCFA.

To partially finance these escalating costs, the government has implemented substantial cuts in investment. State-executed investments funded by internal resources, measured in payment credits, are reduced by 41.4%, dropping from 1,081.2 billion FCFA to 633.4 billion FCFA. Similarly, external loans for investment have been cut by 19.4%, decreasing from 1,209.8 billion FCFA to 975.0 billion FCFA. Conversely, capital transfers from internal resources show a 35.9% increase.

The Loi de finances rectificative Sénégal 2026 also outlines a restructuring of ministerial budgets. A new Ministry of Economy, Finance and Plan emerges with an allocation of 1,117.2 billion FCFA, encompassing significant funds like the national resilience fund (185 billion FCFA), the stabilization fund (70.9 billion FCFA), and the restructuring of heritage companies (22.75 billion FCFA). This creation leads to a substantial reduction for the former Ministry of Finance and Budget, which sees its allocation fall from 676.4 billion FCFA to 244.8 billion FCFA. The Ministry of Energy, Petroleum and Mines is also affected, with its budget decreasing from 130.1 billion FCFA to 17.7 billion FCFA, as it is split to form a new Ministry of Energy and Petroleum with 36.0 billion FCFA, mirroring a similar division in the Telecommunications and Digital sector.

The revised financial framework for 2026 details a significant burden from public debt. The total service of the Dette publique Sénégal 2026 is projected to reach 5,801.4 billion FCFA, comprising 4,516.2 billion FCFA for principal repayments and 1,285.2 billion FCFA for interest. Internal debt constitutes a substantial portion, totaling 3,349.1 billion FCFA. This includes various instruments such as Treasury Bonds (OTA) at 1,119.5 billion FCFA, Treasury Bills (BTA) at 884.2 billion FCFA, bank debt at 629.1 billion FCFA, public savings appeals at 368.8 billion FCFA, the repurchase of IMF Special Drawing Rights (DTS) at 195.6 billion FCFA, and sukuk at 26.5 billion FCFA.

External debt accounts for 2,452.3 billion FCFA of the total. This category is broken down into multilateral debt (569.3 billion FCFA), bilateral debt (370.4 billion FCFA), export credits (569.5 billion FCFA), and commercial debt (917.4 billion FCFA), which includes 354.5 billion FCFA for Eurobonds. These figures highlight the diverse nature and considerable scale of Senegal's borrowing obligations.

Excluding special Treasury accounts (CSTs), the general budget for 2026 allocates 7,251.9 billion FCFA in payment credits. The CSTs themselves show an increase, rising from 256.7 billion FCFA to 332 billion FCFA. Sectoral allocations within the budget include 2,270.4 billion FCFA for economic affairs, 1,984.7 billion FCFA for general services, 1,437.0 billion FCFA for education, 344.2 billion FCFA for defense, 332.8 billion FCFA for order and security, 267.8 billion FCFA for health, and 228.3 billion FCFA for the environment. Housing receives 151.0 billion FCFA, and social protection is allocated 138.7 billion FCFA. By expenditure category, personnel costs are 1,532.8 billion FCFA, debt service is 1,285.2 billion FCFA, current transfers are 1,759.8 billion FCFA, and state-executed investments amount to 1,674.3 billion FCFA. Specific funds within the CSTs, such as the intergenerational fund, stabilization fund, and national resilience fund, also show increased endowments.

This revised finance bill signals significant fiscal adjustments in Senegal, potentially impacting public procurement, sector-specific subsidies (e.g., energy), and the overall economic environment. Lawyers and compliance officers should monitor the final adoption of this law and its implementing decrees to assess implications for client operations, contractual obligations, and potential shifts in regulatory focus or tax policy.

Source: Original reporting via SenePlus