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Senegal: The draft Amending Finance Law 2021 revises the growth rate downwards

08/06/2021
Categories: Economy/Forex

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The draft Amending Finance Law (LFR 2021) adopted Thursday in the Council of Ministers is stopped at 3,170.4 billion FCFA in revenue and 3,987.5 billion FCFA in expenditure. This document revises the growth rate downwards. The draft Amending Finance Law 2021 allocates additional resources to the Employment, Health and Energy sectors and introduces a tax on food broths. It has an absolute budget deficit of CFAF 817 billion, up CFAF 73 billion, or 5.4% of GDP. This deficit will be financed to the tune of CFAF 556 billion by drawings on project loans, programme loans for CFAF 105 billion and other net borrowings for CFAF 156 billion.

The LFR devotes an increase in the budget of the Ministry of Health and Social Action of an amount of 40 billion CFA francs, financed by the World Bank (including a 50% grant component).  following the rise in world oil prices (tariff compensation and trade losses), for an amount of 64 billion CFA francs, which is in addition to the 46 billion CFA francs already provided for in the 2021 BIA, for a total of 110 billion CFA francs. Also, it expects "exceptional revenues" of the order of 60 billion FCFA, expected from the program of land transfers in the area of Léopold Sédar Senghor Airport.

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