Senegal’s Ministry of Finance and Budget has released its latest fiscal reports, following a strong fiscal performance in 2024, in which the country takes a more measured approach in early 2025 to overcome ongoing economic challenges.
The newly released budget implementation reports for the fourth quarter of 2024 and the first quarter of 2025 show that government revenues reached a record level of CFA4,005.21 billion in 2024. This figure exceeded the estimates in the Amended Finance Law by almost 4 percent, driven by a significant increase in tax revenues of CFA176.13 billion. While non-tax revenues saw a slight decrease, capital grants rose to CFA128.03 billion, almost double the expected amount, largely thanks to large contributions from the World Bank and Germany’s GIZ.
In contrast, the first quarter of 2025 reflects a more modest pace. Total revenues increased by 9.72% compared to the same period last year, reaching CFA 1,027.82 billion, representing just over 21% of the annual budget. Tax and non-tax revenues recorded healthy growth, but external grants fell by over 70% to CFA 8 billion, weakening the overall momentum.
Expenditures in Q4 2024 were significant, exceeding budgeted allocations to CFA 6,506.16 billion. Capital expenditures increased sharply by over 61% compared to the previous year, while debt servicing (CFA 822.32 billion) and public sector wages (CFA 1,420.36 billion) remained significant expense categories. Delays remained at an estimated CFA 501 billion, with the energy sector alone reaching CFA 146.3 billion.
Expenditures in Q1 2025 were significantly more conservative, totaling CFA 1,419.45 billion. Of this, CFA 1,130.89 billion was spent on normal operations, including CFA 225.24 billion for debt servicing and CFA 357.07 billion for salaries. However, capital investment remained limited at just under CFA 289 billion, with a real direct investment execution rate of less than 1%. The bulk of capital transfers went to the economy and defense sectors.
The National Pension Fund (FNR) continued to report a surplus despite increased spending, thanks to growth in contributions and revenues – CFA 35.62 billion in Q4 2024 and CFA 11.70 billion in Q1 2025.
Government agencies also implemented budgetary restraint. In the fourth quarter of 2024, 163 public institutions collected CFA2,047.93 billion, falling short of the target of CFA2,753.52 billion. In the first quarter of 2025, 176 institutions generated CFA509.04 billion and spent CFA338.32 billion. Total operating debt, including CFA530.21 billion owed to banks, remained at CFA792.88 billion.
Despite a strong fiscal performance last year, the government faces urgent challenges in 2025, such as accelerating public investment, improving access to external financing, and effectively managing debt and delays to meet budget targets.