South Sudan cabinet passes final draft for 2010 budget

By James Gatdet Dak

November 28, 2009 (JUBA) – The semi-autonomous Government of Southern Sudan (GoSS) on Thursday in an extra-ordinary meeting passed the final draft of the fiscal year 2010 budget to the tune of 4.3 billion Sudanese pounds (about $2 billion US dollars).

The resource envelope for the fiscal year has increased by 19% (700 million Sudanese pounds) from the previous 3.6 billion Sudanese pounds for 2009 budget.

This is only because of projected increase in oil revenues for 2010 as the region continues to remain dependent on the fluctuating oil revenues by 98% of its yearly budget.

Non-oil revenues constitute only about 2% of the budget. Attempts by the government to improve the collection of non-oil revenues have not brought forth the desired results.

In its third reading chaired by President Salva Kiir Mayardit, the budget was presented to the Council of Ministers by the minister of Finance and Economic Planning, David Deng Athorbei.

It was calculated at the rate of 60 dollars per barrel while non-oil revenues collection is forecast for only 101 million pounds in 2010.

GoSS has been expected to receive 50% share of oil revenues produced from the oil fields located in the South per the wealth sharing agreement of the 2005 peace deal that ended the 21 years of North-South civil war.

The other 50% goes to the Khartoum-based Government of National Unity (GoNU).

Donors also reinforce funding for some government’s specific projects.

In the 2010 budget and similar to previous annual budgets, salaries in Southern Sudan constitute the largest chunk of 49% of the whole budget, while operating costs and capital expenditure constitute 30% and 21%, respectively.

Looking at the spending by sectors, the largest spending category remains the security sector which constitutes almost one-third of the budget.

The main sectors providing services such as health, education, infrastructure and natural resource also account around another one-third of the budget while the rule of law and the public administration sectors both account for around 10%.

Transfers to states in terms of block grants and conditional grants account for 28%.

Speaking to the press after the approval of the budget, the government’s official spokesperson Paul Mayom Akech said the budget is geared toward reform and putting into consideration the upcoming political events.

“[The budget is] to enhance a secure environment for the conduct of 2010 elections and prepare the ground for the conduct of the referendum for the people of Southern Sudan” in 2011, he said.

These, he added, include among others maintaining or improving security and conducting awareness campaigns among the populace in Southern Sudan.

He further explained that the budget was also to give priority to contractual obligations by the government for the ongoing projects carried on board from the 2009 budget.

He added that it also seeks to pension off those that are retired from the civil service and provide gratuities to those politicians who may not come back to power after the April 2010 general elections.

Mayom further stressed the Council’s decision to introduce strict financial discipline so that institutions will not be allowed by the finance ministry to unnecessarily overspend beyond their budget ceilings imposed on them.

He also stressed the need to streamline budgeting for independent commissions such as war veterans and war disabled, which share the same responsibility of providing services to the same affected people, in order to avoid duplication of budgeting by such institutions.

GoSS has 53 institutions that it has been budgeting for mostly since the formation of government in 2005.

The budget proposal is expected to be tabled before the Southern Sudan Legislative Assembly next month for final endorsement.

(ST)