Senegal’s Ministry of Finance and Budget released two reports on Monday, June 23, detailing the nation’s contrasting fiscal performance: a robust budget mobilization in 2024, followed by a more restrained start to 2025 marked by persistent challenges.
The budget execution reports for the fourth quarter of 2024 (Q4 2024) and the first quarter of 2025 (Q1 2025) reveal a remarkable financial year in 2024. Total revenue for 2024 reached CFA 4,005.21 billion, exceeding the Amending Finance Law (LFR) forecasts by 3.91% (103.91%). This surge was primarily driven by a CFA 176.13 billion increase in tax revenue, despite a slight decline of CFA 24.38 billion in non-tax revenue. Capital grants also significantly surpassed expectations, reaching CFA 128.03 billion, nearly 95% above forecasts, notably boosted by contributions from the World Bank (30%) and GIZ (21%).
The first quarter of 2025 (Q1 2025) saw a mobilization of CFA 1,027.82 billion, representing 21.44% of the Initial Finance Law (LFI), a 9.72% increase compared to the same period in 2024. Domestic revenues continued their growth, rising by 12.23% to CFA 1,019.82 billion, fueled by an 11.6% increase in tax revenues and a 24.4% rise in non-tax revenues. However, external grants experienced a sharp decline of 71.49%, totaling only CFA 8 billion.
Regarding expenditures, Q4 2024 reached CFA 6,506.16 billion, representing 103.70% of appropriations. Capital expenditures saw a significant increase of 61.29% compared to 2023, totaling CFA 2,267.14 billion. Debt financial expenses (CFA 822.32 billion) and personnel expenses (CFA 1,420.36 billion) remained the largest components, set against persistent arrears estimated at CFA 501 billion, with CFA 146.3 billion attributed to the energy sector.
Q1 2025 expenditure execution appears more prudent, totaling CFA 1,419.45 billion (22.14% of allocated appropriations). Ordinary expenses, amounting to CFA 1,130.89 billion, dominated, with significant portions allocated to debt (CFA 225.24 billion, up 23.98%) and salaries (CFA 357.07 billion). Capital expenditures remained low at CFA 288.57 billion (13.99%), with direct investments showing minimal execution (0.86%). The economic affairs and defense sectors received the majority of capital transfers.
The National Pension Fund (FNR) demonstrated continued improvement, reporting surpluses of CFA 35.62 billion in Q4 2024 and CFA 11.70 billion in Q1 2025. This positive trend is attributed to an increase in contributors and revenue, despite rising expenditures.
Public bodies also maintained prudent management. In Q4 2024, 163 entities mobilized CFA 2,047.93 billion against a projected budget of CFA 2,753.52 billion. For Q1 2025, 176 organizations raised CFA 509.04 billion (23.73%) and spent CFA 338.32 billion (15.80%), with a total operating debt of CFA 792.88 billion, including CFA 530.21 billion owed to the banking system.
Despite the strong performance in 2024, the reports indicate that authorities face several challenges, including accelerating public investment, improving external resource mobilization, and rigorously managing debt and arrears to align with the 2025 budget targets.
AC/Sf/fss/abj/APA