South Sudan passes 2015/2016 budget as fighting continues

Details: Written/Submitted by External Source; Category: South Sudan & African News From Various Sources; Published: 08 September 2015; Hits: 2028

JUBA, Sept 8 South Sudan's parliament passed a much-delayed budget for 2015/2016 on Tuesday, cutting spending by 6 percent in a nation where fighting shows no sign of abating despite last month's ceasefire agreement.South Sudan's fiscal year starts on July 1 but lawmakers have not debated the bill due to fighting in the northern oil-producing regions.The world's newest country has been ravaged by war since December 2013, when soldiers loyal to President Salva Kiir clashed in the capital Juba with troops loyal to his former deputy Riek Machar.Manasseh Magok Rundial, speaker of the parliament, said the new budget would face financial pressures going forward. "The house observed that some (ministries) are demanding additional funds. However, given with the wide budget deficit in this current fiscal year, the House recommends that the concerns ... be addressed in a supplementary budget," added Goc Makuac Mayol, chairperson of the economy, development and finance committee.The new budget puts spending at 10.3 billion South Sudanese pounds, down from 11 billion in 2014/2015. South Sudan's economy has taken a hammering during the course of the conflict and the currency has weakened about 200 percent on the black market since the outbreak of the conflict to trade at about 15 to the dollar. The official rate has remained unchanged at 2.9 to the dollar.The government did not say in the budget how it expects to raise money for the budget but in the past oil has accounted for most of its expenditure. Juba has also taken loans from Chinese companies, offering to pay for them with future oil proceeds. Kiir signed the peace deal last month but both sides have accused each other of violations. Rebels on Monday said the government troops attacked their positions in Upper Nile state, where most of South Sudan's oil is based."These (attacks) clearly demonstrate that Juba regime is not ready for peace to be restored in this country", Colonel William Gatjiath Deng, rebel spokesman said in a statement on Monday.The U.N. Security Council has warned both sides that it could impose sanctions if the August deal collapses. (Reporting by Denis Dumo; Writinig by Drazen Jorgic; Editing by Tom Heneghan ^[1])