South Sudan parliament approves long-awaited fiscal budget amid deficit and delays

JUBA – South Sudan’s transitional parliament approved a national budget of 4.2 trillion South Sudanese pounds on Monday, ending a prolonged standoff involving lawmakers, the cabinet, and the finance ministry.

The budget, passed in a session led by parliamentary speaker Jemma Nunu Kumba, includes a significant deficit of 2.6 trillion SSP and had previously been sent back to the finance ministry twice for revision.

Following the budget’s approval, Kumba, an ally of President Salva Kiir Mayardit, expressed relief and emphasized the urgency of moving forward. The budget now awaits the president’s signature before being implemented by the finance ministry.

“It has been a very long-awaited bill to be passed. So, we are all happy that this budget has been passed finally. Now, it is now in the hand of the ministry [of finance], who will take it to His Excellency the President for signing and thereafter, the minister of finance will now embark on the execution of the budget,” Kumba stated to lawmakers.

Kumba further stressed that parliamentary oversight would be “serious” in ensuring the budget’s effective implementation.

“We hope you will take into consideration all the recommendations that have been made by this August House, especially on the issues of effective budget performance and also considering all the institutions, really, to disburse their budget so that they can function and taking care of all the areas that are outstanding, so that our people can receive their arrears,” she said.

She underscored the importance of clearing outstanding dues to regional bodies, including the East African Community (EAC) and the Intergovernmental Authority on Development (IGAD).

“The region also, the regional institutions that we belong to, also we need to respect our obligations. So we are up to the obligations that we have. Thank you so much. The sitting is adjourned,” Kumba concluded.

Meanwhile the Minister of Finance and Planning Marial Dongrin defended the government’s stance on increased taxation, which had faced resistance from some lawmakers citing delayed salaries and heavy reliance on imports.

“We only tax you when you have money. So, if you are going to receive your pay, you are not going to pay any taxes. The reason behind, the principle behind taxation is very simple,” he said.

“For states all over the world to function, the only source for now, for any government, is to tax the citizens. And therefore, we will have to tax for raising revenues as a means of redistributing resources from those who have enough to those who don’t have,” he added.

The approved budget incorporates recommendations from previous parliamentary readings. It is now expected to be presented to J1 for President Kiir’s endorsement before implementation by the finance ministry.

This budget approval follows a significant delay, as South Sudan’s previous fiscal year ended on June 30. The parliament was expected to approve the budget two months prior, yet civil servants have gone unpaid for over a year, and the government owes diplomats nearly 50 months in salary arrears.

Earlier, in late June, the Ministry of Finance had suspended payments as the 2023-2024 fiscal year ended without parliamentary approval of a new budget.

A draft presented by Finance Minister Awow Daniel Chuong in July—titled “Accelerate Economic Recovery Through Sustained Reforms by Prioritizing Agriculture as an Engine of Growth”—was rejected by the cabinet, which called for a broader approach to diversify government revenue by prioritizing education, healthcare, and mining.