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Senegal’s National Assembly Approves 2025 Budget Amid Rising Debt and Deficit

Senegal’s National Assembly Approves 2025 Budget Amid Rising Debt and Deficit

Taha Sakr
Last updated: December 30, 2024 4:08 pm
By Taha Sakr 3 Min Read
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Senegal’s National Assembly Approves 2025 Budget Amid Rising Debt and Deficit
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Senegal’s National Assembly has approved the country’s 2025 budget of $10.2 billion without any debate, as lawmakers swiftly moved to pass the budget in a session held on December 28, 2024. This development comes at a time when Senegal’s financial situation has raised alarms, with an ongoing audit revealing that the country’s public debt now exceeds 80% of its GDP, far surpassing previous estimates. Moreover, the budget deficit has been reported to be nearly double the official figures for the years 2019-2023, adding to growing concerns over the nation’s fiscal health.

The approval of the budget was formalized following a constitutional provision that allowed Prime Minister Ousmane Sonko to take responsibility for the vote before parliament. The vote was passed without a formal debate in line with Article 86(6) of Senegal’s constitution, which permits the prime minister to assume responsibility for the vote on the finance bill, provided no motion of censure is raised within 24 hours.

The approval process came after the Prime Minister presented a letter to the assembly, confirming his government’s accountability for the 2025 finance bill, which had been deliberated by the Council of Ministers earlier in the month. The National Assembly confirmed the passage of the bill, citing that there was no formal objection or debate as the constitutionality of the vote was respected.

In his general policy statement delivered to the parliament on December 27, Prime Minister Sonko emphasized his government’s commitment to addressing the nation’s rising financial challenges. He outlined plans to bring down the budget deficit to 3% by 2027, with a longer-term target of reducing Senegal’s public debt from its current 80% of GDP to below 70% by 2029. These ambitious goals, however, come amid a troubling economic climate that is likely to place pressure on the government’s ability to meet such targets.

The swift passage of the budget has sparked debate among political analysts and civil society groups who express concern over the lack of debate, especially considering the growing fiscal concerns surrounding the country. With the national debt at historically high levels, Senegal’s budgetary choices for 2025 will likely be scrutinized closely by both domestic and international observers, as the government balances economic growth with debt reduction.

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