According to the draft initial finance law (LFI), Senegal's 2023 budget includes tax and non-tax revenues from hydrocarbon exploitation amounting to CFAF 51.6 billion.
"Overall, the 2023 budget records tax and non-tax revenues from the exploitation of hydrocarbons in the amount of CFAF 51.6 billion," the document said.
It specifies that this amount is distributed as follows "in accordance with the law on hydrocarbons, including CFAF 33.7 billion for the general budget and CFAF 17.9 billion for the following special treasury accounts: Intergenerational Fund: CFAF 5.2 billion; Stabilisation Fund: CFAF 12.7 billion."
The document notes that the year 2023 should usher Senegal into a new era as an oil and gas producing country.
According to the draft LFI, non-tax revenues 'will decrease by CFAF 26.2 billion in 2023, compared to the LFR 2022, due to the non-renewal of an exceptional revenue (sale of CDC land)'.
The same source notes that "they will increase from 180 to 153.8 billion CFA francs with the collection of an amount of 14 billion CFA francs of non-tax revenue from the exploitation of hydrocarbon resources in the general budget."
The LFI also notes that drawings on capital grants will increase by CFAF 12.3 billion, from CFAF 220 billion to CFAF 232.3 billion, while budgetary grants will be relatively stable, with a slight increase of CFAF 0.7 billion (46 to 46.7 billion).
Overall, tax revenue is projected at CFAF 3 486.7 billion in the 2023 Finance Act, as against CFAF 3 052.1 billion in the 2022 Amending Budget Act, an increase of CFAF 434.6 billion in absolute value and 14.2% in relative value.
"These good prospects are explained by the acceleration of the implementation of the Medium-Term Revenue Strategy (MTRS), which federates and coordinates the action of state services for the efficient mobilisation of public resources," it explains.
The draft LFI recalls that 'good performance was recorded in 2022 in terms of revenue mobilisation' and that the year 2023 'should follow the same trends with a consolidation of the good results of the régies in terms of collection'.
"Finally, it is important to emphasise that 2023 will be the first year of collection of fiscal resources directly from the exploitation of hydrocarbon resources belonging to Senegal," the document notes, pointing out that in this respect, "CFAF 19.8 billion are expected in fiscal revenues and will be destined for the general budget.