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Fiscal adjustment and economics growth in Senegal

Author

Listed:
  • Mamadou DIOP

    (University of Cheikh Anta DIOP, Dakar)

  • Abdoulaye TRAORE

    (University of Cheikh Anta DIOP, Dakar)

  • Adama DIAW

    (University of Gaston Berger, Saint-Louis)

Abstract

This article analyses the impact of budget cuts in operating and capital expenditure on short- and long-term economic growth. The results suggest that cuts in investment expenditures have a more pronounced effect on short-term economic growth, with a loss of 0.162% of potential growth for each 1% reduction in investments. In contrast, cuts in operating expenditures have a more moderate effect, leading to a reduction of 0.04% in short- term growth, but their impact intensifies in the long term, reaching a decrease of 0.08%. For better public finance management, these results urge public authorities to further reduce operating expenses.

Suggested Citation

  • Mamadou DIOP & Abdoulaye TRAORE & Adama DIAW, 2025. "Fiscal adjustment and economics growth in Senegal," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(642), S), pages 365-386, Spring.
    • Handle: RePEc:agr:journl:v:xxxii:y:2025:i:1(642):p:365-386
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    References listed on IDEAS

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