Senegal has launched preparations for its 2026 finance law with a strong emphasis on reducing the national budget deficit and prioritising strategic investments.
On August 20, 2025, the Ministry of Finance and Budget convened a workshop in Dakar to outline the guiding principles for the upcoming fiscal year.
The meeting aimed to consolidate previous budgetary achievements while ensuring resources are directed toward key structuring projects.
“Preparation of the 2026 budget must be based on an innovative and equitable tax policy, coupled with rigorous management of public expenditure,” said Massamba Dieng, Director General of the Budget.
Discussions focused on implementing the Multiannual Expenditure Programming Documents for 2026-2028 and the Annual Performance Projects for 2026.
The workshop also highlighted the need to streamline public finances by shifting capital transfers toward direct investments executed by the State.
Priority projects linked to the National Agenda will be carefully reviewed in consultation with the relevant ministries and institutions, ensuring alignment with national development goals.
Senegal faces a significant challenge in addressing its fiscal imbalance. According to the Court of Auditors and the International Monetary Fund, the budget deficit reached between 11.6% and 12.7% of GDP in 2024, nearly half of which was financed through domestic debt, placing additional pressure on the national treasury.
The government has set a clear target: to reduce the deficit to 3% of GDP by 2027. Achieving this threshold is critical for compliance with West African Economic and Monetary Union (WAEMU) standards and is a prerequisite for adopting the ECO, the region’s future single currency.
Officials also stressed reforms in local finance to better mobilise resources at municipal and regional levels.
Climate considerations will be integrated throughout the budget planning process, reflecting the growing focus of technical and financial partners on the sustainability of public investments.
The 2026 Finance Bill is expected to be presented to Parliament in the coming months, adhering to the official budget preparation timetable.
About The Author
