Finance Minister tells South Sudanese: Tighten your belts

South Sudan’s Finance Minister has likened the nation’s economic and financial situation to a war”. Kosti Manibe then called upon various financial bodies and the South Sudanese Parliament to focus on improving the country’s budget.

We are currently involved in a financial war,” Manibe said. The situation had much to do with the fact that South Sudan could no longer sell its oil, he said. But this was not the only cause of South Sudan’s economic problems.

Manibe warned the South Sudanese people that there would likely be inflation. Tighten your belts but continue with your lives as usual,” Manibe said. But don’t panic, everything is in place.”

Manibe stated that no money would be taken from government’s reserves without parliamentary approval.

To ensure accountability, all expenditures for the year 2012 and 2013 must be approved by the Assembly,” explained Manibe, who presented a budget, filled with austerity measures and general cuts, to Parliament in late June.
 
One thing that will not be affected though is the Ministry of Agriculture’s budget. Agriculture is seen as one of the areas in which South Sudan can grow and which it desperately needs.

As the Minister for Agriculture and Forestry, Betty Achan, pointed out, agriculture was the backbone of the country, not oil. Plant more seeds,” she urged her constituents. The Government of South Sudan will also distribute more seeds for you this year.”

Meanwhile the Minister of Information, Barnaba Marial Benjamin, wanted to reassure locals that the rate of inflation at markets throughout South Sudan would be controlled. The government was taking measures to ensure there was enough foreign currency in the country to cover the nation’s needs as well as instituting other policies.

The increase in prices is artificial,” Benjamin said. There are certain groups within this country working to force prices up. But the government will see that this exercise comes to an end.”

South Sudan’s President Salva Kiir was also quick to refute any idea that the country was in deeper economic trouble. Kiir instructed the Ministry of Finance to initiate contingency plans that would allow faster collection of non-oil revenues. And he urged the Ministry of Finance to do its best, and make best use of what revenues the country has.

He also said that, with austerity measures in place, South Sudan would be able to meet the demands of the budget.