Parliament approves budget, warns against corruption

Of the budget of more than ten billion South Sudanese Pounds (around US$ 3.5 billion), more than half was earmarked for military spending and rule of law amid ongoing fighting between troops loyal to President Salva Kiir and his former deputy Riek Machar.

More than half of South Sudan’s 2015/16 annual budget was earmarked for military spending and rule of law.

The security sector leads the budget spending with SSP 4.5 billion and SSP 1.5 billion for the rule of law. According to the new figures, more than six times as much would be spent on security than education (which will get SSP 676 million).

Health would get just SSP 316 million, although the country is among the worst in the world for most health indicators.

The finance minister said that South Sudan would borrow SSP 3.6 billion from external loans and SSP 128 million from donors to meet the budget estimates. The remaining SSP 6.8 billion will be generated from oil and non-oil revenues, which have slumped due to fighting in oil producing areas. In May, the Petroleum Ministry said that violence cut crude output by at least a third.

Goc Makuach Mayol, Chair of the Committee of Economy, Development and Finance, recommended strict financial discipline in the fiscal year, which runs July 2015 – June 2016.

Lawmakers discovered disparities in executing the budget for the 2014/2015 fiscal year with security, defence and the Office of the President doubling their budgets.

Others, including health, education, agriculture and dams as well as transports had their budgets reduced and operated in deficit.

“There was a general disparity in the release of funds by the Ministry of Finance and Economic Planning to the spending agencies whereby others overspent at the expense of others. The house directs the ministry of finance to equitably release funds to all spending agencies on a monthly basis,” he added.

Dengtiel Ayuen Kur, Chairperson of the Legislation and Legal Affairs Committee, read the Appropriation Bill 2015/2016 with specific penalties including prison terms and life suspension from financial office for individuals convicted of mismanaging public money.

Ayuen urged the Ministry of Finance and other government spending agencies to avoid overspending which contravenes the provisions of the appropriations bill. He warned that punitive measures will be taken against individuals found misappropriating public funds, adding that they could face a prison term of up to ten years.

The deliberation that lasted for four hours was heated as the 23 Members of Parliament voiced anger at the Ministry of Finance for failing to avert financial mismanagement. According to the MPs, several ministries had their 2014/15 approved budget shelved but other ministries, including the office of the president and security agencies spent beyond their budgeted maximum limits.

However, Finance Minister David Deng Athorbei has denied his ministry was responsible for overspending, saying he works under enormous pressure. “It is not the ministry of finance [overspending]. It is the government overpaying,” Deng told the MPs, both National and Council of State Legislators.

“The money we pay out is spent by us – including you. That is why we overpay,” he said, adding that it was not clear if it was wrong or not.