Senegal sets 2027 budget deficit at 4.7% of GDP in draft — The Rio Times
In Senegal, the draft finance bill for 2027 provides for an overall budget deficit of 4.7% of gross domestic product, or CFA francs 1,351.7 billion. This is about $2.3 billion. The figure is lower than the 7.6% of GDP included in the revised 2026 budget, The Rio Times reports.
Revenue and expenditure
Budget revenue is planned at CFA francs 6,012.1 billion, while expenditure is set at CFA francs 7,363.7 billion. Compared with the revised 2026 budget, revenue is expected to increase by 2.8%, while expenditure is expected to decrease by 2.9%.
The deficit reduction is mainly linked to lower spending. Expenditure on goods, services and transfers is expected to decrease by 4.2%, to CFA francs 2,093.7 billion. Domestically financed investment is planned to be reduced by CFA francs 176.4 billion, to CFA francs 956.8 billion. At the same time, the wage bill is expected to increase by 4.1%, to CFA francs 1,596.2 billion.
Debt-servicing costs in the draft amount to CFA francs 1,303.9 billion, or about $2.2 billion. This nearly matches the entire planned deficit. Tax revenue is expected to reach CFA francs 5,044.6 billion, 2.3% more than in the revised 2026 budget.
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Financing and IMF program
Total budget financing needs are estimated at CFA francs 6,608.7 billion. Of this amount, CFA francs 4,552 billion is planned for repayment of existing debt, while another CFA francs 480 billion will be used to repay domestic arrears owed to local suppliers.
Senegal expects to raise CFA francs 4,733.7 billion through markets and creditors under financing programs. Another CFA francs 900 billion is expected to come in project loans, while concessional financing is expected to exceed CFA francs 800 billion.
The draft budget was presented after a staff-level agreement with the International Monetary Fund on a new 36-month program for Senegal worth about $2.2 billion. Launching the program requires approval by IMF management and the Executive Board, as well as fulfillment of conditions related to correcting previously provided public-finance data and financing assurances from partners. The draft budget must also be considered and voted on by Senegal's National Assembly.
