Senegal confirms a dynamic of budgetary consolidation that strengthens the credibility of its macroeconomic framework. According to the quarterly budget execution report published in April 2026 by the Ministry of Finance and Budget of Senegal, the public deficit was reduced to 6.44% of gross domestic product (GDP) in 2025, amounting to 1,387.5 billion CFA francs, a level lower than the annual target of 7.82% set in the amending finance law.
This performance reflects a prudent budget management by the authorities, supported by sustained revenue mobilization and controlled execution of public expenditures. For financial actors and development partners, this evolution represents a positive signal in terms of budget discipline and macroeconomic stability.
Budget revenues recorded a significant increase, reaching 4,477.1 billion CFA francs, an 11.8% increase compared to 2024. This dynamic is largely explained by the growing importance of the oil and gas sectors, which have contributed to strengthening tax revenues, particularly through corporate tax and financial income.
Non-tax revenues also exceeded expectations, driven by public dividends, domain revenues, and royalties from the telecommunications sector. However, external grants mobilization remains subdued, constituting one of the main challenges identified in the budget execution for the year.
On the expenditure side, overall execution reached 93.9% of forecasts, reflecting a certain rigor in the management of public resources. Ordinary expenditures were almost fully executed, dominated by debt service, payroll, and current transfers, particularly subsidies to the energy sector.
On the other hand, public investments showed a more moderate pace, with an execution rate of 78.4%, particularly affected by the slowdown in external financing. For investors and financial institutions, this situation underscores the importance of improving the efficiency of disbursement mechanisms and the coordination of structuring projects.
These results are in line with a favorable macroeconomic environment, characterized by a GDP growth estimated at 6.7% in 2025, supported by the start of major energy projects and industrial expansion. Inflation, maintained at 1.4%, also reinforces economic stability.
By 2026, Senegalese authorities aim to reduce the deficit to 5.4% of GDP, in line with the convergence criteria of the West African Economic and Monetary Union. This strategy is based on strengthening domestic tax mobilization, rationalizing operating expenses, and improving the rate of public investment execution.
This budgetary trajectory reflects a strong commitment to anchor public finance management in a sustainability logic, an essential condition to support the industrialization and economic transformation of Senegal.
