According to the projections of the Ministry of Finance and Budget of Senegal, an upward trend of its resources of 16% is expected for 2022-2025. This forecast is supported by the implementation of the SMRT (Medium Term Recovery Strategy), the gradual reduction of non-essential exemptions and the continuous modernization of tax and customs procedures in order to optimize revenue mobilization and expansion of the base , according to the services of the Ministry of Finance in its economic and financial report annexed to the Initial Financing Law (LFI) 2021.
Other factors that may favor this growth are the programming of the Youth Olympic Games, scheduled for 2022, and the first effects produced by the exploitation of oil and gas from 2023.
Regarding public spending, it is expected to increase by 13.3% between 2022 and 2025. “Thus, observes the Ministry of Finance and Budget, the weight of spending in relation to gross domestic product (GDP) would be, on average, by 26.3% during the 2022-2025 period compared to 24.1% in 2019 and the deviation of 27.7% in 2020 ”.
Finally, regarding the country’s budget deficit, the Senegalese Ministry of Finance points out that “the Government intends to reduce it gradually and maintain it at 3% of GDP from 2023 (through 5% in 2021 and 4% in 2022) ”, after the deviation of its trajectory during 2020 due to COVID.The objective of these values in terms of the budget deficit is to strengthen the soundness of fiscal policy and the sustainability of Senegal’s public finances.