Senegal’s ruling PASTEF party has rejected the government’s revised 2026 budget, raising concerns over the country’s debt restructuring plans and a proposed International Monetary Fund (IMF) support programme.
The party, led by former Prime Minister Ousmane Sonko, cited disagreements over budget decisions, financing arrangements and inadequate guarantees to Parliament. However, it expressed willingness to engage with the Government to reach an agreement.
Senegal’s debt reached 132% of gross domestic product (GDP) by the end of 2024, following revelations of billions of dollars in borrowing that had been misreported by the previous administration.
In early September 2026, the government reached a staff-level agreement with the IMF for a $2.2 billion, 36-month Extended Credit Facility to support its economic reform programme. Failure to secure parliamentary approval for the revised budget could delay the programme and complicate debt restructuring efforts.
The amended budget cuts projected real GDP growth for 2026 to 2.7%, from about 5% in the original budget, while widening the fiscal deficit to 7.6% of GDP from 5.4%. The deficit increase is largely driven by a sharp rise in energy subsidies, which have tripled to 790.3 billion CFA francs ($1.36 billion), from 250 billion CFA francs. Prime Minister Ahmadou Al Aminou Lo is expected to address the revised budget at a press conference on Sunday.