XALIMANEWS: The year which is coming to an end has been particularly trying, with regard to the management of public finances, government spokesperson Amadou Moustapha Sarré told the Senegalese Press Agency (APS), referring to in particular to the budget deficit and the surge in the country's external debt.
''This year has been particularly trying. You have clearly seen the state in which we found this country, a situation which was the subject of declarations by members of the government, notably the Prime Minister,” said Mr. Sarr.
The government carried out an inventory of the country's economic and financial situation following taking office, he said in an interview with the APS.
Amadou Moustapha Sarré, Minister responsible for Vocational and Technical Training, also specifies that the West African Economic and Monetary Union (UEMOA) recommends to any new political majority of its member states to take stock of the local economic situation, in a period of a few months after its installation.
''This allowed us to realize that the situation was much more difficult than we were led to believe. The budget deficit is far higher than what we were told, because it even exceeds 10%,'' explained Mr. Sarré.
Senegal's public deficit in 2024 amounts to 11.6% of gross domestic product (GDP), indicates a report published Tuesday by the finance committee of the National Assembly.
The average public debt during the period 2019-2023 was 76.3% of GDP, indicated the Minister of Economy, Planning and Cooperation, Abdourahmane Sarr, during a press conference given by the government, on September 26.
''At the end of 2023, the state debt […] excluding the parapublic sector was 15,664 billion, or 83.7% of GDP, while it was announced at 13,772 billion, or 73.6% of GDP. It is therefore an additional contracted and unpublished debt of nearly 1,892 billion, or 10% more of GDP,'' denounced Mr. Sarr.
These data lead the government spokesperson to say that Senegal's debt level ''breaks the ceiling of the economic community to which we belong'', in this case UEMOA.
''It is, therefore, a particularly difficult situation,'' insisted Mr. Sarré, adding: ''It was therefore necessary to take rapid recovery and readjustment measures, which we did. This allowed us to operate the state normally.''
The floods and the subsidization of energy consumption cost the State “several hundred billions,” he continued, suggesting that these expenses increased the public deficit.
''Concerning the floods, 8 billion CFA francs were spent. Let's not forget that early legislative elections were organized, they cost 20 billion CFA francs. I recall all this to tell you that the situation was not easy at all,'' argued the government spokesperson.
''We are dealing with all of this. The budget that we are going to vote by the end of the year will allow us to gain new momentum,'' he hopes.
APS
