Senegal’s 2026 revised budget: how the deficit surge will hit households and businesses
Senegal’s revised 2026 budget, now under parliamentary scrutiny, pushes the fiscal deficit to 1,735.2 billion CFA francs. The consequences are already tangible: planned investments are being cut, subsidies are ballooning, and the Pastef majority must decide whether to endorse a budget tied to an IMF deal it once criticized. For ordinary citizens and businesses, the stakes could not be higher.
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The text has been on lawmakers’ desks since September 18, and it may well be the most uncomfortable vote of this legislature. As they examine the 2026 revised finance law, the Pastef majority faces two bad options: approve a budget linked to the agreement with the IMF, or risk being accused of paralyzing the state. Every answer carries a political cost, and the economic fallout for households and businesses is already taking shape.
On substance, the revised budget redraws the year’s accounts in profound ways. The fiscal deficit is now projected at 1,735.2 billion CFA francs, or 7.6% of GDP, up from an initial 5.4%. The government attributes the deterioration mainly to soaring energy subsidies, new priority spending, and lower-than-expected revenues.
The energy sector absorbs the bulk of the shock. The envelope to support the sector jumps from 250 billion to 790.3 billion CFA francs, an increase of 540.3 billion. Meanwhile, expected revenues fall to 5,848.7 billion CFA francs, 340.1 billion less than the 6,188.8 billion forecast in the initial finance law. The executive blames the global energy crisis and a rainfall deficit.
To contain the drift, the text sacrifices investment. The government plans to cut 555 billion CFA francs from investment, split between domestic and external resources. As a counterbalance, some social safety nets are strengthened: the family security scholarship envelope rises from 35 billion to 70 billion CFA francs. Authorities also aim to bring energy subsidies below 1% of GDP by 2029 while better targeting vulnerable households. That last orientation is fueling anxieties over electricity and fuel prices, with direct consequences for purchasing power and business costs.
A yes vote means endorsing a deal the party once denounced
This law is not a mere accounting adjustment. It comes after the agreement reached between Senegal and the IMF, which still awaits approval from the Fund’s Board. The staff-level agreement covers $2.2 billion over 36 months. And the IMF mission chief for Senegal, Mercedes Vera Martin, has been…
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Front pages of September 26, 2026View all front pages
Libération
La Voix +
L’As
Dakar Times
Le Quotidien
Source A
Pastef
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