South Sudan finance minister presents 2024-2025 draft budget before parliament

JUBA – South Sudan’s minister of finance and planning, Marial Dongrin Ater, has today presented the country’s 2024-2025 draft national fiscal budget to parliament, proposing a total expenditure of SSP4.172 trillion, which is equivalent to $1.335 trillion.

The budget, described as “a budget for bad times,” by the minister aims to sustain peace, political stability, achieve macroeconomic recovery, and improve citizens’ well-being through strategic resource allocation.

Presenting the long-awaited budget, Dongrin said the proposed spending limit is SSP 4.172 trillion within a resource envelope of SSP2.258 trillion, of which SSP1.138 trillion comes from oil revenues and SSP1.119 trillion from non-oil revenues, constituting 50% of the total revenue estimates.

To reduce the budget deficit, Dongrin suggested that the production of Dar blend must resume to recover 70% of the projected oil revenue, amounting to SSP 1.7 trillion.

To meet the targeted 50% non-oil revenue in the resource envelope, the minister proposed increasing some tax categories and abolishing unnecessary tax exemptions. “We propose adjusting the fee structure for some tax categories as well as canceling non-statutory tax exemptions,” he told MPs.

Breaking down the expenditure ceiling of the budget, the minister stated that wages and salaries account for the lion’s share with SSP 773.8 billion, constituting about 19% of the budget. “10% of the total amount, equivalent to SSP 412.5 billion, is earmarked for the Use of Goods and Services,” he added.

SSP 419.3 billion, constituting 10%, was allocated for states, administrative areas, and state-organized forces. SSP 2.3 billion, approximately 1% of the budget, was allocated for other expenses.

Meanwhile, 15%, or around SSP 642.3 billion, was allocated for salary arrears for both civil servants and organized forces.

“6% of the total amount, aggregating to SSP 257.5 billion, is allocated to funding December 2026 pre-election activities,” Dongrin stated. “4.2% of the total amount, summing to SSP 173.7 billion, is earmarked for humanitarian and emergency funds,” he noted.

The government allocated 2.6%, or almost SSP 108.5 billion, to funding transfers to international treaties. Constituency development received SSP 30 billion, just 1%. The finance ministry set aside SSP 96 billion, approximately 2.3%, for foreign mission arrears.

Additionally, SSP 93.8 billion (2.2%) was allocated for peace implementation, and the Agriculture Bank of South Sudan received SSP 8.6 billion, which is 0.9% of the budget.

“0.9% of the total amount, equivalent to SSP 35.7 billion, is earmarked for clearance of carried forward arrears (cheques),” Dongrin added, “while 0.8%, or an equivalent of SSP 34.3 billion, is allocated to funding litigation and settlement of disputes.”

11%, or SSP 493.4 billion, was allocated for capital expenditure, and mandatory expenditure such as paying Sudan tariffs, transportation, and processing of oil received SSP 157 billion, 3.8%.

SSP 22.8 billion (0.5%) was allocated for funding transfers of 2% to oil-producing states. SSP 34.2 billion was allocated for funding transfers of 3% to oil-producing communities.

The Minister of Finance revealed that the Ministry of Petroleum was allocated SSP 34.2 billion (0.8%). For debt repayment, SSP 286.6 billion, equal to 6.9%, was earmarked to clear obligations.

“1.3% of the total amount, equivalent to SSP 55 billion, is earmarked for SSRA retention and commission (14.5%),” Dongrin stated.

“I present the proposed national FY2024/25 budget, appropriation, and finance bill for your deliberation and approval,” Dongrin concluded.

In response, Speaker Jemma Nunu referred the draft national budget to committees led by the specialized committee on economic and planning for scrutiny.

Nunu called on the committees to work hard and report back to the House within 21 days.