Senegal’s National Assembly finance committee is to review a revised budget crucial to securing a proposed 2.2-billion-dollar programme with the International Monetary Fund (IMF), following its initial rejection by lawmakers.
Finance Minister Cheikh Diba requested the review on Tuesday, urging lawmakers to reconsider the draft budget rejected by the ruling Pastef party, which holds a large majority in parliament.
The move comes as Senegal seeks a new 36-month financing programme with the IMF to stabilise its public finances after its debt burden reached 132 per cent of gross domestic product (GDP) by the end of 2024, according to the Fund.
The debt crisis followed the discovery of billions of dollars in previously unreported borrowing under the previous administration, raising concerns about the country’s fiscal position.
Any delay in approving the revised budget could jeopardise the proposed IMF programme, which is intended to support Senegal’s economic reform efforts.
“Beyond budgetary concerns, the current situation also calls on us to show responsibility, discernment and a sense of perspective in our institutional relations,” Diba said.
The finance minister explained that the request was intended to “seek a constructive outcome” and “avoid differences leading to a shutdown” that could harm the country.
National Assembly President Ousmane Sonko, who leads Pastef, agreed to refer the budget back to the finance committee and said he would arrange dates for committee proceedings and the next plenary session.
Sonko told lawmakers that the Assembly would “cast its vote with complete calm and complete clarity”.
The budget dispute comes amid heightened social tensions, high youth unemployment and a cost-of-living crisis that prompted a three-day general strike the previous week.
On Monday, Prime Minister Ahmadou Lo urged lawmakers not to paralyse the country by blocking the revised budget.
“You cannot bring a country to a standstill,” he said, urging Pastef to return to “dialogue” amid the economic crisis.
The parliamentary review is expected to provide another opportunity for lawmakers and the government to address their differences over the budget as Senegal seeks to advance negotiations with the IMF.
African News
