Amendments to the fiscal law for the 2022 budget: key lines announced

Ultimately, the 2022 draft budget is set at a total of 5567.71 billion CFA francs including debt amortization.

Compared to the initial Finance Law, it recorded an increase of CFAF 368.7 billion in full value and 7.1% in full value.

In total, the new budget expenditures, within the framework of this LFR project, amounted to 343.5 billion CFA francs.

These resources are intended to cover priority costs such as the continuation of the work of the Inclusive and Sustainable Development of Agro-Business Project (PDIDAS) previously funded by the World Bank for 2.6 billion FCFA.

They are also related to the management of those affected by the Petersen station through the Bus Rapid Transit (BRT) project and the implementation of seawater desalination and KMS3 projects for 2.5 billion FCFA.

They are concerned about the additional funding of the Autonomous Road Maintenance Fund (FERA) for 13 billion FCFA and the additional funding for the organization of elections (5.8 billion FCFA).

These new expenditures are also related to the funding of service spaces under the Youth Employment program for 800 million FCFA.

They will also be used to complete the works of the universities Amadou Moctar MBOW, Assane SECK of Ziguinchor and El’Hadj Ibrahima NIASSE of Sine Saloum for a total amount of 5.3 billion CFA francs.

The amendment to the fiscal law will make it possible to mobilize additional funding for the operation of universities and university activities in the amount of 9.920 billion FCFA;

Strengthening the method of collection and management of household waste for 10 billion FCFA, the continuation of the Touba sanitation project for 4 billion FCFA as well as the Emergency Program for the Modernization of Border Axes (PUMA) for 1 billion FCFA, will be considered in the LFR.

This LFR project primarily oversees all financial commitments subscribed by the Government within the framework of agreements concluded with social partners, in this case teachers ’and health unions, and on the other hand, the Defense and Security Forces and other agents of the Administration.

This, in order to insert more equity into the payment system of urgent needs in terms of defense and security the energy subsidy supplement to support the purchasing power of households.

The LFR will also make it possible to strengthen support for food product prices and increase money transfers to the most vulnerable populations.

The reasons for amending the fiscal bill in 2022 are justified by the emergence of some inconvenient factors for public finances and contrary to preliminary forecasts.

This, as the Senegalese economy has begun to recover to gradually return to its previous growth before covid 19, under the impact of budget consolidation policies put in place by the Government, including the implementation of measures to program. economic and monetary agreements concluded with the International Monetary Fund within the framework of the Instrument for the Coordination of Economic Policies.

Because the basic foundations of the 2022 budget have been shaken, and the government must present an amended fiscal law.

Among the causes is the Russia-Ukrainian crisis which has caused an inflationary shock, specifically in energy and food products and is currently affecting the world economy emerging from COVID19.

In dealing with this crisis, the budgetary lever has been strongly called for to mitigate its impact on the household basket and on petroleum products;

There was also the closure in China, which led to a shortage of manufacturing and construction products previously imported from China, which also had an upward impact on the price of some everyday consumer products for the Senegalese.

The embargo on Mali, a strategic partner country of Senegal and Senegal’s first customer in the WAEMU zone, has also had a huge influence, if we know that the Malian economy is strongly correlated with the Senegalese economy.

To alleviate the climate in society, President Macky Sall authorized a re -evaluation of the salaries of personnel in the sectors of education, health, defense and security forces and other public officials who do not form unions. This salary increase is also considered in the key lines of the 2022 amended fiscal law.

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