By Taban Gabriel
King New 25th Sept Juba – The 2024-2025 draft national budget was presented to the South Sudanese Parliament today by the Minister of Finance, Dr. Marial Dongrin Ater. The proposed budget outlines a total expenditure of South Sudanese Pounds (SSP) 4.172 trillion for the coming fiscal year. This budget aims to address the current economic and political challenges while sustaining peace and stability in the country.
“We propose adjustment in the fees structure for some tax categories as well as cancellation of non-statutory tax exemption,” he told MPs.
Breaking down the expenditure ceiling of the budget, minister stated that wage and salaries got a lion share with SSP 773.8 billion, constituting about 19 per cent 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 percent, was allocated for states, administrative areas, and state-organized forces.
While SSP 2.3 billion, approximately 1 percent of the budget is allocated for other expenses.
Meanwhile, 15 percent, that is, 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 Dec 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 in draft budget, allocated 2.6 per cent, almost SSP 108.5 billion to funding transfer to international treaties. Constituency development got SSP 30 billion just 1%.
The finance docket put aside SSP 96 billion, an approx. of 2.3 percent for foreign mission arrears.
In addition, for peace implementation SSP 93.8 billion (2.2%) has been allocated and agriculture bank of South Sudan got SSP 8.6 billion that is 0.9 per cent 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%, equivalent to SSP 34.3 billion is allocated to funding litigation and settlement of disputes.”
11 percent, SSP 493.4 billion, was allocated for capital expenditures, and mandatory expenditures such as paying Sudan tariffs, transportation, and oil processing received SSP 157 billion, 3.8%. SSP 22.8 billion (0.5%) was allocated for a funding transfer of 2 percent to oil-producing states. SSP 34.2 billion was allocated for a funding transfer of 3 percent to oil-producing communities.
Speaker of council of states during the presentation of the fiscal year budget 2024,2025 at the parliament
The Minister of Finance revealed that the Ministry of Petroleum was allocated SSP 34.2 (0.8%). For debt repayment, SSP 286.6 billion, equal to 6.9 percent, 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%),” he added “I present the proposed national FY2024/25 budget, appropriation and finance bill for your deliberation and approval,”
In response, Speaker Jemma Nunu referred the draft national budget to a committee led by a specialized committee on economics and planning to scrutinize the proposed budget.
Nunu called on the committees to work hard and report back to the House after 21 days without fail.
Dr. Dongrin emphasized that the budget is designed to achieve macroeconomic recovery and improve citizen well-being through strategic resource allocation. Of the total resource envelope, SSP 2.258 trillion will be allocated, including revenues from both oil and non-oil sectors. The oil revenue is projected to contribute SSP 1.138 trillion, which makes up a significant portion of the national budget.
Veteran Journalist Mal Maker Attends the Presentation of the 2024-2025 Fiscal Year Budget (Photo Credit: Taban Gabriel, King News)
Non-oil revenue is also expected to play a crucial role, with SSP 1.119 trillion contributing to 50% of the total revenue. Dr. Dongrin highlighted that reducing the budget deficit will require the resumption of Dar Blend oil production, which is expected 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, Dr. Dongrin suggested that the government must reform its tax policies. This includes increasing certain tax categories and eliminating unnecessary tax exemptions to boost non-oil revenue and address the financial gaps in the national budget.