Senegal’s National Assembly rejected the government’s amended 2026 budget on November 3, adding fresh uncertainty to negotiations over a proposed $2.2 billion International Monetary Fund (IMF) support programme. The setback comes as the West African country struggles with high public debt, strained financing conditions and a growing split between President Bassirou Diomaye Faye and the parliamentary majority aligned with Ousmane Sonko.
An initial vote count recorded 109 lawmakers opposing the bill, but the Assembly subsequently revised the figure to 126 against, after accounting for proxy votes. The rejection does not itself cancel the proposed IMF financing, which still requires formal approval.
Key Overview
- Budget defeated: The final reported tally was 126 votes against, 20 in favour and three abstentions, following a correction for proxy voting.
- IMF financing at stake: Senegal has a staff-level agreement for a proposed 36-month, approximately $2.2 billion programme, pending approvals and financing assurances.
- Revised deficit: The rejected budget would have increased the 2026 deficit target to 7.6% of GDP, from 5.4% in the original budget.
- Lower growth outlook: The amended projections reduced expected 2026 economic growth to 2.7%, from roughly 5%.
- Political divide: Sonko’s Pastef party, which controls the Assembly, opposes the government’s budget revisions.
Why Lawmakers Rejected the Revised Budget
The November 3 parliamentary vote followed two rejections by the Assembly’s finance committee in October. Pastef lawmaker Amadou Ba invoked a procedural motion to prevent further debate, arguing that lawmakers lacked adequate information to assess the revised fiscal plan.
The government had sought to align the budget with weaker-than-expected revenue and higher spending needs. The revised fiscal figures put revenue at CFA5.85 trillion, down from CFA6.19 trillion, while spending would increase to approximately CFA7.58 trillion from CFA7.43 trillion. That would lift the projected shortfall to CFA1.74 trillion.
The proposed adjustments included higher energy subsidies and cuts to planned investment spending. Finance Minister Cheikh Diba warned that continued delays could aggravate government cash-flow pressures, while lawmakers questioned the credibility and completeness of the assumptions.
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IMF Programme Faces Another Hurdle
The September staff-level agreement envisages an approximately $2.2 billion Extended Credit Facility arrangement over 36 months. However, the agreement still needs IMF management and Executive Board approval, corrective steps relating to previously misreported debt and financing assurances from partners.
Senegal’s financing difficulties intensified after previously undisclosed public liabilities came to light. According to the IMF’s country assessment, restoring debt transparency, strengthening fiscal controls and improving debt management are central to discussions over renewed support.
The parliamentary rejection could delay the policy commitments needed to move the financing package forward, potentially complicating budget funding and access to other external support. It does not mean that the IMF has formally withdrawn the arrangement.
Political Rift Complicates Fiscal Reform
The dispute reflects a wider rupture between President Faye and Sonko, who was dismissed as prime minister in May 2026 and subsequently became National Assembly president. Despite the change in government, Sonko’s Pastef party retains substantial parliamentary influence.
The legislative disagreement leaves the executive needing to negotiate revised budget assumptions with a majority that has rejected the current proposal. It also raises questions about whether the authorities can balance debt-service costs, social spending and the fiscal consolidation expected under a new lending programme.
For investors and development partners, the next signals will be whether the government submits a revised bill, secures a political compromise and agrees on a credible fiscal framework with the IMF. Until then, the $2.2 billion package remains prospective, while immediate financing pressures persist.
Sources: Reuters / APA News / International Monetary Fund / Africanews
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