SP&PFM engages in high-level dialogue with Senegal’s Ministry of Economy regarding analysis of the fiscal space for social protection

High-level meeting with the Ministry of Economy to present technical study on the fiscal space for social protection in Senegal, October 2022.

Through the SP&PFM Programme, the International Labour Organization presented the results of its analysis of Senegal’s fiscal space for social protection to the Directorate General of Planning and Economic Policies of the Ministry of Economy, Planning and Cooperation on October 12. The results included a package of 20 measures recommended for increasing social protection that cover three financing options: reallocation of public expenditure, increase in tax revenue and extension of social insurance.

The 25 participants in the high-level dialogue included economists from the Directorate General of Planning and Economic Policies and representatives of the General Delegation for Social Protection and National Solidarity.

The discussion of the 20 measures underpinning the three financing options allowed for the collection of government perspectives on current plans and policies and on the feasibility of these measures in view of the country’s priorities. As a conclusion to the dialogue, the Ministry officials agreed with the proposed budget reallocation measures concerning free water, electricity and petroleum product subsidies as well as taxes on luxury goods.

The participants also agreed that some of the other proposed measures, such as taxes on consumer goods, need to be deepened and contextualized, especially considering the current inflationary context, the recovery from post-COVID-19 crisis at the global level and the consequences of the Ukrainian crisis.

The participants also cited several actions that would facilitate the adoption of reforms that should lead to the effective implementation of the financing measures: advocacy by the Directorate General of Planning and Economic Policies at the time of arbitration; the opportunity to formulate a new priority action plan in the framework of the Plan for an Emerging Senegal, starting in 2024; and a budgetary support mechanism for the Government of Senegal.

Read the Study on financing social protection in Senegal (in French) and the its main findings (in French) that were presented during the technical dialogue meeting.

Learn more about SP&PFM in Senegal here.