The initial finance law for 2025, recently presented by the Senegalese government, proposes a significant reduction in the budget deficit, with an improvement of nearly 4.5 points in GDP compared to the amending finance law of 2024. This measure was welcomed by Majdi Debbich, resident representative of the International Monetary Fund (IMF) in Dakar, who described it as a “laudable effort”.
In an interview given to The SunMajdi Debbich stressed that this reduction in the deficit demonstrates a “significant commitment to better control of public finances”, a crucial element to ensure the economic stability of the country. However, the IMF representative expressed certain reservations regarding the discussions between IMF staff and the Senegalese authorities.
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He clarified that “discussions on specific hypotheses and reforms, particularly in terms of revenue mobilization, have remained limited at this stage”, and insisted on the need for “in-depth analysis to assess the feasibility of this ambitious objective “. Finally, Majdi Debbich mentioned the lack of reform of energy subsidies, which, according to him, remain costly. He suggested that more targeted support to vulnerable households would be a more effective approach.
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