Senegalese Parliament Blocks Budget Amid IMF Deal
The opposition-led National Assembly voted down the revised fiscal plan, creating uncertainty for a $2.2 billion loan program with the International Monetary Fund.
By Hassan Ellis ·
Senegal’s opposition-controlled parliament rejected a revised budget on Tuesday, placing the country’s pending $2.2 billion bailout from the International Monetary Fund in jeopardy.
The National Assembly voted 109 to 20, with three abstentions, to reject the fiscal text. El Malick Ndiaye, the presiding lawmaker, announced the outcome following a morning debate that began at 10:00 a.m. local time.
The Pastef party, which holds an overwhelming majority in the legislature, had long signaled its opposition to the 2026 revised budget. The party, led by former presidential candidate Ousmane Sonko, had previously sent the bill back to committee. The finance committee, also dominated by Pastef members, rejected the proposal on two prior occasions.
Senegal announced in September that it had agreed to a $2.2 billion debt program with the IMF to stabilize public finances. However, the IMF’s executive board has not yet approved the deal, and the finalization of the bailout depends on meeting specific conditions, including the passage of this budget.
The revised budget aimed to address a sharp rise in hydrocarbon prices, partly driven by tensions in the Middle East. It also accounted for a decline in projected tax revenue following a recent government recovery plan and an increase in debt-servicing costs.
The Ministry of the Economy stated on Saturday that the rejection occurred in a context of severely limited room for manoeuvring, difficulties in accessing financial markets, and ongoing negotiations with the IMF. Finance Minister Cheikh Diba attended the parliamentary debate.
The political standoff reflects a dramatic feud between President Bassirou Diomaye Faye and Sonko, who serves as the speaker of the National Assembly. The rejection adds complexity to Senegal’s efforts to restore public finances while managing its relationships with international lenders.
