- An IMF mission visited Senegal to review findings of the audit report by the Court of Auditors, confirming significant under-reporting of fiscal deficits and public debt between 2019-2023.
- The team evaluated the extent of fiscal data revisions and discussed with the authorities the institutional and procedural factors that contributed to the underreporting, as well as measures to improve transparency and public financial management.
- The IMF welcomes the authorities' commitment to fiscal transparency and stands ready to support Senegal in designing a new reform program, informed by the audit findings and national development priorities, once the necessary conditions are in place.
Dakar, Senegal: A staff team from the International Monetary Fund (IMF), led by Mr. Edward Gemayel, visited Senegal from March 18 to 26, 2025, to engage with the authorities on the findings of the Court of Auditors audit report released on February 12, 2025. The comprehensive audit reviewed budget execution over the 2019–2023 period and confirmed significant underreporting of fiscal deficits and public debt. The mission aimed to assess the magnitude of the misreporting, understand the mechanisms that contributed to the discrepancies, and discuss corrective measures to help prevent recurrence.
At the conclusion of the mission, Mr. Gemayel issued the following statement:
"The IMF staff team welcomes the Senegalese authorities' strong commitment to fiscal transparency and accountability. The audit by the Court of Auditors found significant revisions to Senegal's fiscal data for the period 2019–2023. Specifically, the average fiscal deficit was revised upward by 5.6 percentage points of GDP, while central government debt was revised from 74.4 to 99.7 percent of GDP at end-2023. These revisions primarily reflect previously undisclosed liabilities, including hidden loans amounting to 25.3 percentage points of GDP.
"These findings point to serious lapses in budget controls and public financial reporting, underscoring the need for urgent reforms. The team sought to better understand the magnitude of the misreporting and the legal, institutional, and procedural shortcomings that allowed it to occur. Discussions also focused on identifying corrective measures to enhance fiscal transparency, reinforce budget oversight, and prevent recurrence.
"Senegal's economic activity in 2024 remained resilient. Preliminary estimates point to real GDP growth of around 6.0 percent last year, supported by a strong performance in the hydrocarbon sector. Inflation has remained low, averaging 0.8 percent, contributing to a stable price environment. The fiscal deficit reached 11.7 percent of GDP and central government debt is preliminary estimated at 105.7 percent of GDP at end-2024. Financing conditions have tightened significantly, reflecting constrained regional markets, delays in donor support, and increased reliance on costly short-term external borrowing. These pressures highlight the importance of laying the path for a credible fiscal consolidation path.
"Looking ahead, bold and credible reforms are essential to ensure a timely return to the WAEMU fiscal deficit target and to place public debt on a firmly downward trajectory. Priority measures include streamlining tax exemptions and phasing out costly, untargeted energy subsidies. These reforms will help rebuild fiscal buffers, which are needed to cope with future shocks, support development priorities, and reduce macroeconomic vulnerabilities.
"The authorities have expressed their intention to request a new IMF-supported program. The IMF stands ready to support Senegal in designing a reform-oriented arrangement that builds on the audit findings and aligns with the government's development strategy. Discussions on a potential new program will start once corrective actions to address the misreporting have been initiated and soon after the IMF Executive Board's consideration of the misreporting case.
"The IMF staff team would like to thank the Senegalese authorities for their warm hospitality, excellent cooperation, and the candid and constructive discussions held during the mission."
During the visit, the IMF staff team met with His Excellency, President Bassirou Diomaye Faye; Mr. Ousmane Diagne, Minister of Justice, Mr. Abdourahmane Sarr, Minister of Economy, Planning, and Cooperation; Mr. Cheikh Diba, Minister of Finance and Budget; and other senior government officials. The team also engaged in productive discussions with representatives from labor unions, civil society, and development partners.
