South Sudan to hike public spending next year by 33% - finmin

South Sudan plans to spend 2.1 trillion South Sudanese pounds ($2.1 billion) in the fiscal year starting next month, 33% higher than the budget for the previous period, the finance minister said on ......

(ICRC)

 

JUBA, June 20 (Reuters) - South Sudan plans to spend 2.1 trillion South Sudanese pounds ($2.1 billion) in the fiscal year starting next month, 33% higher than the budget for the previous period, the finance minister said on Tuesday.

The young nation's economy is still slowly emerging from the ravages of the 2013-2018 civil war and predominately relies on crude oil sales for nearly all its revenues.

While presenting the budget to lawmakers, Finance Minister Dier Tong Ngor said the 2023/24 fiscal year's spending would be aimed at stimulating economic "recovery through viable fiscal, monetary and structural reform measures."

He did not elaborate on those measures and also did not give an economic growth projection for the next fiscal year.

Persistent instability in parts of the country have continued to hamper general economic activity and cross-border trade, causing shortages of key commodities and a spike in prices of fuel, food and medicine.

"Our economy continues to suffer from numerous external shocks and internal structural weaknesses, which have created acute macroeconomic instability and suffering to our people," Ngor said.

To fund the budget, about 1.8 billion South Sudanese pounds will be raised domestically, including from oil revenues, while the rest of the funds will be generated via borrowing, he said. (Reporting by Simon Waakhe Wudu; Writing by Elias Biryabarema; Editing by Emma Rumney)