The Socialist Party, through its spokesperson Abdoulaye Wilane, has responded to the government's 2026 Initial Finance Bill (LFI). In a statement released, the party considers this budget "under pressure" and believes it represents "a fiscal shock with uncertain effects."

A budget deemed too harsh for households and businesses

"In a single year, the tax burden would jump from 19.3% to 23.2% of GDP, an increase of almost four points - something never seen before," notes the Socialist Party.

Behind the words "recovery" and "clean-up," the Socialist Party denounces "a generalized tax increase that will weigh primarily on households and businesses." The party cites in particular "300 billion on online gaming and betting," "76 billion on mobile money transfers," and "increases in banking services."

According to Abdoulaye Wilane, "such a tax tightening, without accompanying measures, risks having the opposite effect to that intended." He warns that these increases could "slow down consumption, stifle SMEs, increase informality, discourage investment, and push some companies to relocate their activities."

The Socialist Party emphasizes that "budgetary rigor is necessary," but that it "must not turn into a social shock." For the Socialist Party, "the Senegalese economy needs breathing space, not running out of steam."

 

“No hidden debt, but a change in accounting method”

 

Abdoulaye Wilane also wanted to "reestablish the truth" on the alleged "hidden debt" mentioned by certain government officials.

According to the PS spokesperson, "there was no concealment, but a change in scope and accounting method." The increase in the public debt ratio, which rose from 73% to around 130% of GDP, could be explained by two factors: "the integration of contingent debts and conditional commitments of public and parapublic companies (SENELEC, PETROSEN, La Poste, etc.) previously tracked outside the general state budget" and "the inclusion of arrears and unbudgeted debts, i.e. existing commitments that were previously recorded partially or in a deferred manner in the national accounts."

"These adjustments do not reflect a desire for concealment, but an effort at budgetary sincerity," the Socialist Party asserts.

He added: "Arrears and unbudgeted debts were not hidden, but carried over or rescheduled based on cash availability and current budgetary priorities, in compliance with WAEMU rules."

For the Socialist Party, "the uncovering of these arrears is a useful step, as it allows us to start afresh on a sound basis." However, the party calls for "avoiding presenting this as the discovery of a hidden treasure trove of debt."

The Socialist Party warns of "the perverse effects of the rhetoric of hidden debt." According to Abdoulaye Wilane, "by presenting to the financial world a Senegal supposedly on the verge of bankruptcy, certain officials have inadvertently undermined the confidence of technical and financial partners."

This communication would have, according to him, "made donors more cautious, cooled investors' appetite" and "fueled a climate of suspicion" around negotiations with the IMF, "now more demanding", the perception of sovereign risk on the WAEMU regional market, "where interest rates have increased" and "the reputation of the country, until then perceived as a model of stability and reliability".

"Words carry economic weight. By lightly brandishing the expression 'hidden debt,' we have created doubt where we needed to restore confidence," warns the socialist spokesperson.

The Socialist Party calls for "stability and transparency, not statistical score-settling." Abdoulaye Wilane points out that "debt figures must be compared using identical methods" and that "the debt issue is structural and collective; it transcends political alternations."

The Socialist Party encourages the government to "continue audits and clarification of public accounts", but "without fueling false accusations against the past".

Proposals for fairer budgetary governance

Among its recommendations, the Socialist Party proposes "the creation of an independent commission (Court of Auditors, National Assembly, General Inspectorate of Finance) to harmonize calculation methods", "a lasting reform of budgetary planning", "growth taxation based on broadening the tax base and the fight against fraud" and "permanent social dialogue to protect purchasing power".

“Recovery must not be done against the people, but with them”

In conclusion, Abdoulaye Wilane affirms that "the Socialist Party remains faithful to its commitment to rigorous, equitable and transparent public management."

"The country does not need quarrels over figures, but an honest debate on the sustainability of the debt and on the economic choices to come," he insists.

And to conclude: "The recovery of our finances must not be done against the people, but with them, in a spirit of responsibility and truth."