South Sudan cabinet resolves to maintain security budget
By Julius N. Uma
February 11, 2012 (JUBA) – As South Sudan prepares to announce much anticipated austerity measures, its council of ministers on Friday resolved to maintain the defense and interior ministry’s budgets, the government spokesperson said Saturday.
“The new measures will not interfere with our security,” Marial told journalists, adding that “The council resolved that there should be no reduction in salaries for the army and the police during this period.”
The austerity measures come in the wake of South Sudan’s decision to completely shut down its nationwide oil production after it accused neighbouring North Sudan of stealing the country’s crude oil entitlements. Khartoum says that Juba was not paying fees for transporting its oil to Port Sudan.
Oil revenues account for 98% of South Sudan’s country’s budget but the north also relies on the oil fees to bring in much needed hard currency.
Marial said, despite the new environment, the government will continue focusing on key sectors of the economy citing food security, education and health as top priorities.
In a related development, however, the country announced it had officially launched a tax campaign that seeks to expedite South Sudan’s transition to non-oil revenue.
The initiative, the finance ministry said in a press release, aims at increasing non-oil revenue collection by 300% within a six-month period.
“Right now, we are collecting about 13 million SSP [South Sudan Pounds – around $5 million] a month in non-oil revenue, not including customs” Kosti Manibe, the finance minister said.
“In the next six months, we want to increase that to 40 million SSP a month. That is still only about 5% or less of pre-shut down monthly expenditures by the government, but it’s enough for some essential services,” he added.
However to enforce the campaign, the ministry intends to embark on a robust public relations initiative, that will involve production of printing materials, training of taxpayer education officers, radio public service announcements and establishment of a customer service number earmarked to provide fast and easy answers.
In addition, the finance ministry plans a series of sessions with journalists in the coming weeks as part of the nationwide efforts to review progress and provide detailed explanation on the various tax regulations in the country.
(ST)