Senegal Embarks on Fiscal Transparency Reform
Dakar, Senegal - In a bid to enhance transparency and accountability in public finances, the Government of Senegal has launched an ambitious action plan aimed at improving fiscal reporting practices.
Improving Fiscal Reporting Practices
The plan, unveiled by the Ministry of Economy and Finance, seeks to strengthen the country’s fiscal framework by introducing accrual basis and balance sheet accounting, as well as market price-based valuation of assets and liabilities. The initiative also aims to:
- Improve the analysis of macrofiscal forecasts
- Enhance public participation in fiscal policy discussions
- Establish a mechanism for publishing guarantees and onlending activities
- Make the government equity investment strategy publicly available
Addressing Challenges
According to officials, the action plan is designed to address the challenges faced by Senegal in terms of fiscal transparency and accountability. “Our goal is to provide citizens with accurate and timely information about government finances, allowing them to hold us accountable for our actions,” said a senior official at the Ministry of Economy and Finance.
Key Components
Under the plan, the Public Debt Directorate will:
- Publish guarantees and onlending activities on its website
- Make public the government equity investment strategy
The Multiyear Budgetary and Economic Programming Document (DPBEP) will include:
- A statement of fiscal risks
- Detailed figures for multiyear forecasts of principal macroeconomic indicators
Strengthening Macroeconomic Forecasts
The plan aims to strengthen the analysis of macrofiscal forecasts by providing a quantitative analysis of differences between forecasts and actual outcomes, as well as details of the grounds for revising forecasts from one year to another. Alternative macroeconomic scenarios will be projected and their impact on the budgetary and fiscal environment will be shown in the budget documents.
Enhancing Public Participation
The plan seeks to enhance public participation in fiscal policy discussions by establishing a mechanism for public consultation on fiscal policy issues. This will involve:
- Preparing and disseminating a manual for drafting Multiyear Expenditure Programming Documents, Priority Action Plans, and Annual Performance Reports
Timeline
The action plan is expected to be implemented over the next two years, with regular progress reports to be submitted to the government and other stakeholders.
Fiscal Reporting Practices in Senegal
Senegal’s fiscal reporting practices have been evaluated against the standards of Pillar I of the Fiscal Transparency Code. The evaluation highlights several areas for improvement, including:
- Need for more comprehensive coverage of institutions, stocks, and flows
- Improved frequency and timeliness of fiscal reporting
- Enhanced quality, accessibility, and comparability of fiscal reports
- Increased integrity of fiscal reports
The report recommends that Senegal adopt accrual accounting principles, improve the analysis of macrofiscal forecasts, and enhance public participation in fiscal policy discussions. It also calls for the establishment of a mechanism for publishing guarantees and onlending activities, as well as the government equity investment strategy.
Conclusion
Overall, the action plan is seen as an important step towards enhancing transparency and accountability in Senegal’s public finances. With its implementation, citizens are expected to have access to more accurate and timely information about government finances, allowing them to hold their leaders accountable for their actions.