By Yang Ater Yang
Lakes State Council of Ministers has approved 21.9 billion South Sudan Pounds (SSP), 2024-2025 Fiscal Year (FY) budget.
The state Finance and Planning Minister Majok Anhiem Dhal had presented the budget for its first reading in Cabinet meeting chaired by Governor Rin Tueny, on Wednesday.
The council, which includes the governor, deputy governor, advisors, and chairpersons of various commissions, passed the budget unanimously.
Minister Dhal reported that the total resource envelope for the upcoming fiscal year is 21,975,875,964 SSP, reflecting an increase from the previous year’s budget of 20 billion SSP. This increase is attributed to an estimated 5% growth.
“While we have a budget of 21 billion SSP, we anticipate a deficit of 1 billion SSP. We plan to cover this shortfall through local resources, or it may be offset by additional funding from Juba,” Dhal explained.
He emphasized that it is important to start the budget process locally, even as they await a final ceiling from the national government.
The minister acknowledged that the criteria used in the previous budget (2023-2024) were not implemented due to challenges arising from the ongoing crisis along the Sudan border, which disrupted oil production.
Consequently, the state has been operating under the previous budget and has incurred arrears for the last two months of 2023.
Dhal assured that the national government is working diligently to address these arrears, particularly as oil production resumes.
He noted that the health sector has been underfunded, receiving only 7% of total revenue allocation instead of the globally recommended 15%.
“As a state government, we are responsible for the salaries of our healthcare workers, who are not funded from the national level. They are civil servants dedicated to serving the community,” he said.
The state has allocated an additional 1 billion SSP to support health services, underscoring the need for increased national funding for the health ministry.
The approved budget will now proceed to Parliament for approval after recess, which is expected to end on November 26.
Dhal expressed confidence that the budget will be scrutinized and approved, allowing for timely salary payments to civil servants in Lakes State.
In comments regarding salary delays, Dhal urged patience among civil servants, affirming that the finance ministry is committed to resolving outstanding payments for November and December 2023.
He attributed the delays to external factors, particularly the crisis in Sudan, which has severely impacted oil production and, consequently, state revenues.
Daniel Laat Kon, the State Coordinator for the Community Empowerment for Progress Organization (CEPO noted that while the budget approval is a positive step, it comes later than ideal, as the fiscal year typically begins in July.
Kon also stressed the importance of addressing issues such as gender-based violence and improving infrastructure, particularly internal roads in Rumbek.
He called on Parliament to carefully consider the budget and ensure effective implementation to meet the needs of the community.
“This budget must not only be approved but also effectively implemented. We need to ensure that funds reach the ministries and that salaries are paid to motivate our workforce,” he said.