Senegalese Prime Minister Ahmadou Al Aminou Lo said the government could use constitutional means to resolve a standoff over its 2026 budget if talks with lawmakers fail, threatening efforts to secure a new International Monetary Fund program. Parliament is due to vote on the revised budget on Tuesday after lawmakers from Ousmane Sonko’s Pastef party, which holds a majority in parliament, rejected it this week. Lo ruled out concessions on spending levels, arguing that cuts to public investment and social spending, and a reduction in fuel subsidies, were needed to keep the deficit on track. "If we cannot reach an agreement on Tuesday, we have some constitutional options available," Lo told reporters in Dakar.
Finance Minister Cheikh Diba warned that failing to approve the budget would undermine Senegal’s credibility with citizens, businesses and international partners. Senegal is seeking IMF board approval for a proposed $2.2 billion, three-year IMF program agreed at staff level in September. The IMF suspended an earlier lending program in 2024 after undisclosed borrowing.
Pastef cited delays in receiving budget documents. A prolonged dispute could complicate debt talks under the Group of 20’s Common Framework. Lo emphasized the government prefers dialogue and warned abandoning the deficit target could make it harder to secure financing.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing