Sudan approves austerity budget as war drains economy

January 22, 2025 (PORT SUDAN) – Sudan’s military-led government on Wednesday approved a 2025 budget focused on funding the war effort and essential services, as conflict with the Rapid Support Forces (RSF) has ravaged the economy and displaced millions.

The budget, passed by a joint meeting of the Sovereign Council and the Council of Ministers, comes as Sudan grapples with the loss of 80% of state revenue and a projected 40% economic contraction due to the ongoing conflict.

“This is an unconventional budget passed in the face of immense challenges,” Finance Minister Gibril Ibrahim told reporters. He said the budget prioritizes military spending, humanitarian aid, and essential services like health and education.

Ibrahim highlighted the government’s reliance on gold revenues, expected to reach $2 billion, and the need to expand the tax base. He also noted that public sector salaries would be restored to 100%.

General Abdel Fattah al-Burhan, head of the Sovereign Council, praised the government’s efforts to maintain basic services, including holding national exams despite the war. He condemned the RSF as a “terrorist militia” seeking to disrupt education.

Al-Burhan also lauded the Central Bank of Sudan for its efforts to replace currency, a process complicated by the conflict. The government recently introduced a new 1,000 Sudanese pound note and withdrew the 500-pound note in areas under its control.

He called for conferences and workshops to plan the reconstruction of Sudan following the devastation caused by the fighting.

The conflict, which erupted in April 2023, has displaced more than 4 million people and caused widespread shortages of food and medicine.