- September 25, 2024
- Posted by: Tekajwok Ogut
- Category: News
Wednesday, September 23, 2024- Juba
Department of Communication and Media- MoFP
The Minister of Finance and Planning, Hon. Dr. Marial Dongrin Ater presented the Draft National Budget, the Appropriation Bill and Finance Bill for Fiscal Year 2024/2025 to the Transitional National Legislature in a sitting chaired by the Speaker of TNLA, Rt. Hon. Jemma Nunu Kumba.
In delivering his Budget Speech, Minister Dongrin started by acknowledging the delays in submission process of the budget but assured his full preparedness to budget execution as soon as the August House deliberate and approves the budget.
The Minister outlined the country’s Macroeconomic outlook in relations to the global economic growth which he said is expected to stabilize at 3.0% this year. He also added that growth rate in Sub-Sahara Africa is anticipated to rise to 4.2% in 2024. The Minister said that East African region is poised for a strong economic growth anticipated at an overall rate of 4.9% in 2024 and expected to increase to 5.7% in 2025. He added that South Sudan and Rwanda are leading with a growth rate of 6.8%, a forecast that underscore a positive economic outlook for the region with a potential for a continued growth and development in the years ahead.
On the performance of Fiscal Year 2023/2024 budget, Minister Dongrin said that South Sudan real GDP experienced a 5% contraction as a result of consecutive years of severe flooding and prolonged droughts in parts of the country as well as the conflict in Sudan which led to damage on Dar Blend oil pipeline and its subsequent shutdown. The Minister added that the country’s oil and gas sector saw a 70% reduction in the last quarter of FY2023/2024 resulting to an estimated decline of 105,000 barrels per day citing the continued disruption in crude oil production and expert as a national security matter.
Minister Dongrin called on the August House to support socioeconomic policies that prioritizes resolving challenges facing agriculture sector to safeguard the sustainability and resilience of the agriculture industry. He added that government has earmarked SSP 255 billion in this year’s budget to facilitate investment in agriculture and ensure food security. The Minister said that government has earmarked SSP 75 Billion to incentivize strategic investment in mineral sector to expand revenue base and foster economic diversification.
In strengthening regulation in finance and services sector, Minister Dongrin proposed the enactment of two bills namely; South Sudan Insurance Bill as well as Betting, Gaming and lotteries Bill. He said these bills if enacted to laws would help in formulation of regulatory strategies, facilitate sustainable market development and promote competitiveness as well as boost revenue generation.
The Cabinet approved the Fiscal Year 2024/2025 Budget on August 2, 2024 and passed it to parliament at a proposed spending limits totaling to SSP 4.172 trillion along with the resource envelope of SSP 2.258 trillion out of which the expected income from oil is SSP 1.138 trillion with non-oil revenue projected at SSP 1.119 trillion consisting of 50% of the total revenue estimates.
The Minister outlined the following financing options as measures to reduce budgetary deficit; Resumption of Dar Blend oil production and export which he said would make the government to recover 70% of projected oil revenues amounting to SSP 1.7 trillion. He also cited collaboration with partners to secure grants and concessional loans in line with the Public Financial Management reforms to finance the deficit. The Minister also highlighted exchange rate realignment by the Ministry of Finance and Planning alongside Bank of South Sudan to unify the exchange rate and bridge the gap between the parallel market and official exchange rate.
In concluding his speech, Minister Dongrin said, “the proposed budget for FY2024/2025 will relentlessly prioritize initiatives that directly benefits our citizens, such as consolidating peace, honoring salary commitments, settling arrears, funding security sector reforms, servicing outstanding debts, stabilizing the economy and promoting economic diversification”.
The theme of the Fiscal year 2024/2025 Budget is; “To Accelerate Economic Recovery through Improving Livelihoods, Sustaining Peace and Investing in Critical Social Services and Agriculture”.
