Dakar, Dec 28 (APS) – Reduce the budget deficit from 11.6% of GDP in 2024 to 7.08% of GDP in 2025, a growth rate of 8.8%, an inflation rate of 1.9 % of GDP… We present to you the State budget of Senegal for next year, based on a document from the Ministry of Finance and Budget.
The initial finance bill (LFI) for the year 2025 is set in revenue at 5,014.3 billion CFA francs, compared to 4,915.2 billion for the 2024 finance law, an increase of 99.1 billion in absolute value and 2% in relative value. In expenditure, it amounts to 6,614.8 billion, compared to 5,755.4 billion for the 2024 finance law, an increase of 859.4 billion in absolute value and 14.9% in relative value.
The general budget amounts to 4,794.6 billion in revenue and 6,395.1 billion in expenditure.
All actions in the draft budget for the year 2025 are supported by 10 allocations and 129 budget programs distributed between 25 ministries and seven institutions.
Forecasts from the Ministry of Finance and Budget show a budget deficit of 7.08% of GDP in 2025, a GDP growth rate of 8.8% and an inflation rate of 1. 9% of GDP.
Senegal has set itself the objective of moving towards “budgetary consolidation by 2027 and achieving a deficit of 3% of GDP”, in compliance with the convergence criteria of the Economic and Monetary Union. West African.
”This new trajectory of budgetary consolidation results from taking into account the real situation of budget execution for 2024, with a deficit expected at more than 11% of GDP,” explains the ministry.
He wishes to point out that this level of deficit is the consequence of revenue losses and upward adjustments of the financial charges of the debt and expenditure on project loans to their actual level.
Cheikh Diba, Minister of Finance and Budget
The budgetary framework of the LFI 2025 provides for a GDP growth rate of 8.8%, in connection with the new profile of oil producer and the slowdown in secondary and tertiary activity.
The inflation rate should be 1.9% of GDP, the tax rate 19.3%, compared to 19.4% in the 2024 LFI.
To take into account the international environment, regularly subject to shocks which affect macroeconomic balances and public finances, a precautionary reserve of around 90 billion CFA francs was established with investment expenditure on resources internal and external.
”This budget marks a catch-up effect compared to the 2024 financial year, which is strongly impacted by the effects of socio-political tensions during the first quarter of 2024 and the continued slowdown in economic activities throughout the rest of the year, excluding energy sector”, explains the Ministry of Finance and Budget.
”Another major fact is the entry of Senegal into the circle of oil producers, with production expected at 15 million barrels for 2024 and 30 million barrels for 2025,” he adds.
The ministry assures that ”gas production will start in 2025”. ”Estimates of revenues from the exploitation of hydrocarbon resources […] are set for the years 2024, 2025, 2026 and 2027, with respective amounts of 49.65 billion CFA francs, 72.53 billion, 87.87 billion and 155.20 billion.”
These estimates were made based on price assumptions from the global economic outlook published by the staff of the International Monetary Fund in October 2024, according to the ministry.
”The 2025 budget records tax and non-tax revenues from the exploitation of hydrocarbons in the amount of 72.53 billion CFA francs,” he indicates.
This Saturday, December 28, the National Assembly is examining the initial 2025 finance bill.
In accordance with the law on hydrocarbons, an amount of 50.85 billion (70%) from the exploitation of these natural resources must go to the general budget in 2025, and the special accounts of the Treasury should receive 21.68 billion (30%).
An amount of 7.25 billion (10%) drawn from oil revenues intended for special Treasury accounts must be paid to an intergenerational fund created by the hydrocarbons law, and 14.43 billion (20%) to a stabilization fund .
Senegal’s 2025 general budget includes a tax revenue section set at 4,359.6 billion, with an increase of 179.6 billion compared to the 2024 LFI, or 4.3%.
Non-tax revenues are around 190 billion, with a drop of almost 20 billion, or 9.5%. Drawings on project donations are estimated at 200 billion, with an increase of 134.5 billion compared to the forecasts of the 2024 amending finance bill. Budgetary donations should amount to 45 billion, according to ministry forecasts.
The expenditures of the 2025 budget include the financial charges of the public debt (interest and commissions) increased to 932.1 billion, compared to 578.3 billion in the 2024 LFI, and 824 billion in the 2024 amending finance bill, i.e. increase of 108.08 billion in absolute value, and 13.1% in relative value.
Personnel expenses are estimated at 1,485.5 billion, compared to 1,442.5 billion in the 2024 LFI, an increase of 43.1 billion, an increase of 3%.
Expenditure on the acquisition of goods, services and current transfers is estimated at 1,930.5 billion, compared to 1,676.9 billion in the LFI 2024, and 1,871.0 billion in the 2024 amending finance bill — which was voted by the deputies, Tuesday December 24 -, an increase of 253.6 billion, which corresponds to an increase in relative value of 15.1% compared to the 2024 BIA.
Capital expenditure from internal resources is stopped at 880 billion CFA francs, compared to an amount of 1,134.7 billion for the LFI 2024, readjusted to 900.7 billion, a drop of 20.7 billion in absolute value and 2, 3% in relative value compared to the LFR.
Capital expenditure from external resources is increased to 1,167 billion, compared to a forecast in the 2024 LFI of 701.6 billion, with a readjustment of 1,178.5 billion in the 2024 amending finance law, a drop of 11.5 billion in absolute value and 1% in relative value.
The Treasury’s special accounts are projected, all balanced in revenue and expenditure, at 219.7 billion, compared to 221.5 billion for the 2024 LFI, a drop of 1.8 billion representing 0.8%.
ESF/ASG
