On Thursday, September 26, the Senegalese authorities presented a less than reassuring assessment of public finances, affirming that the former regime had manipulated the figures.
Julie Kozack, spokesperson for the International Monetary Fund (IMF), expressed the institution’s support for the general audit of public finances carried out by the Senegalese government. She welcomed the authorities’ commitment to strengthening governance and budgetary transparency.
“The authorities shared the results of the audit with our team. We will work closely with them in the coming weeks to assess the macroeconomic impact and define the next steps,” declared Julie Kozack this Saturday, October 5.
This statement comes in a context of controversy regarding the figures announced by the government. The report published on September 26 by the Minister of Finance, Mamadou Sarr, revealed a budget deficit much higher than expected, reaching 10.4% of GDP compared to the 5.5% initially announced. Public debt stands at 76.3% of GDP, exceeding the previously reported 65.9%.
Opposition figures and journalists close to the former regime have questioned these figures put forward by Prime Minister Ousmane Sonko and his government. Some of them were summoned by the cybercrime brigade, but the prosecution decided not to follow up on these summons, granting them freedom.
Minister Sarr also specified that the central government’s debt reached 15,664 billion FCFA at the end of 2023, or 83.7% of GDP, an amount much higher than initial forecasts.
Despite this situation, the Senegalese government chose not to submit its file to the IMF to avoid any risk of erroneous information. The IMF, however, reiterated its support and its intention to work closely with the Senegalese authorities to restore economic stability.
The government has committed to reducing public debt to less than 70% of GDP and reducing the budget deficit to 3%. It also plans to review projects financed by external loans and reduce subsidies.ergetics.
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