35% increase: Minister presents annual budget to South Sudan’s parliament
The 17.3 billion South Sudanese Pound (SSP) budget for the 2013/2014 fiscal year, presented to the South Sudan Parliament on Monday, increased by 35 percent compared to the previous 2012/2013 6.7 billion SSP annual budget.
Presented to the parliament under the theme Boosting services and economic growth in a prudent and responsible manner”, it is South Sudan’s largest annual budget so far. The budget is supposed to be passed by the parliament by July 1 every year.
We are proceeding for the time being on the assumption that our agreements will be honoured.”
This budget I am presenting to you today was prepared based on the assumption that oil production will continue,” South Sudan’s Acting Minister of Finance and Economic Planning Marial Awou told the parliamentarians.
Though the oil flow through Sudan’s territory, pipeline and port has again come to a halt amid ongoing political tensions between Sudan and South Sudan, Awou said we are proceeding for the time being on the assumption that our agreements will be honoured”.
In addition to the anticipated oil revenues, the budget takes into account funds generated through non-oil revenue and loans. The Acting Minister pointed out that the government aims to further intensify non-oil revenues compared to the previous fiscal year.
Between July 2012 and May 2013 we have collected 591 million SSP in tax revenues compared to 242 million SSP for the full financial year 2011/2012,” Awou explained. We have collected an additional 147 million SSP in custom duties and fees,” he added.
According to Marial Awou the budget spending is based on priority areas determined by South Sudan’s President Salva Kiir Mayardit: Restoring the housing allowances and block grants that were reduced as part of last year’s austerity measures; improving basic services in education, health and water for the people in rural areas; rapid development of infrastructure to support economic development; and boosting the agriculture and non-oil sectors of the economy to create jobs.
He further explained that out of the 17.3 billion SSP budget only 9.2 billion SSP will be available for government spending. The rest will be used for repaying loans, paying arrears, building reserves, paying pipeline transit fees and other agreed transfers to Sudan.
We must exercise discipline if we expect to achieve results from our planned activities.” The largest increase by sector is in infrastructure, which will increase from 160 million SSP to 664 million SSP to fund roads, airports, water infrastructure, housing and other infrastructural projects.
The country’s economic plight is worsening, reflected in a growing dependence on foreign aid and loans. Following last year’s oil shut down, which according to experts and despite all efforts still accounts for 95 percent of the South Sudan government’s revenue, swinging austerity measures were imposed, cutting allowances of civil servants and reducing service delivery to the people.
This is perceived by many South Sudanese, 50 percent of the population live below the poverty line, as failure. Two years after independence people expect the government to provide more jobs, adequate healthcare, schools, housing and roads and blaim their leaders for the lack of investment in infrastructure and key business sectors such as agriculture.
Marial Awou’s presented budget seems to take this into account and he called upon the parliament to quickly pass the budget. He also emphasised that strengthening and maintaining discipline in the budget execution is crucial. We must exercise discipline if we expect to achieve results from our planned activities,” he said.
