By William Madouk
Transitional National Legislative Assembly, on Tuesday, passed the 2024-2025, fiscal year national budget, financial bill and appropriation bill with amendments to third reading, four months after the elapse of the previous one.
Chairperson of the Assembly’s Finance and Economic Committee, Micheal Ayuen Johnson, who tabled the budget, cited an increase in the deficit from 46 to 63 per cent.
“However, the FY 2024/2025 budget has a deficit of SSP 1,914,581,953,395 (46%) and new additions by clusters stand at the tune of SSP 695,452,983,395, said Ayuen.
The committee chairperson said that the FY 2024/2025 budget deficit will rise to the tune of SSP 2,610,034,847,165.
According to the report, the increment was to clear membership arrears of regional blocs, foreign missions, ministries, CDF arrears and additional funds allocation to the Urban water connection network in Wau, among others.
The committee suggested that all borrowing and loans must be presented to the parliament before execution, in accordance with Public Financial Management and the constitution.
The specialized economic committee also endorsed that government adopt 10% for agricultural development per the Malabo declaration.
They urged the finance minister to give details of the 6.9%, amounting to SSP 286.6 billion allocation to debt repayment in FY 2024/2025 budget.
The economic committee also proposed a deduction of SSP 19.5 billion from SSP 257.5 billion that was earmarked for funding in December 2026; pre-election activities re-allocate it to peace dissemination.
However, this point received a kick as MPs said pre-election activities are vital for timely polls, meanwhile, minister of Finance, Marial Dongrin also advised not to cut off the pre-election budget.
The Speaker, Jemma Nunu announced the lawmakers passing the budget
after thorough deliberations.
“Hon. Members of the august House, we have now passed the bill on the national budget for fiscal year 2024/2025 – the three reports that were presented to the third reading,”
According to Nunu, the legislators will be notified of the schedule of the third reading.
In August, Mr. Dongrin tabled the long-awaited budget, he proposed limit spending at SSP 4.172 trillion along resource envelope of SSP 2.258 trillion, of which SSP 1,138 trillion revenues from oil.
And SSP 1,119 trillion of non-oil revenue, constituting 50 per cent of the total revenue estimates.
He cited that, to reduce budget deficit production of Dar blend must resume to recover 70 per cent of projected oil revenue amounting to SSP 1.7 trillion.
To meet the targeted 50% non-oil revenue in resources envelope, Mr. Dongrin suggested that government must adjust some tax categories and abort unnecessary tax exemptions.
Break down
Breaking down the expenditure ceiling, the minister stated that wages and salaries got a lion’s share of SSP 773.8 billion, constituting about 19% of the budget.
“10% of the total amount, equivalent to SSP 412.5 billion is earmarked for the Use of Goods and Services,” he added.
SSP 419.3 billion, constituting 10 per cent was allocated for states, administrative areas and state-organized forces.
While SSP 2.3 billion, approximately 1 per cent of the budget is allocated for other expenses.
Meanwhile, 15 per cent, that is around SSP 642.3 billion was allocated for salary arrears for both civil servants and organized forces.
“6% of the total amount, aggregating to SSP 257.5 billion is allocated to funding Dec 2026 pre-election activities,” Dongrin stated.
“4.2% of the total amount, summing to SSP 173.7 billion is earmarked for humanitarian and emergency funds,” he noted.
The government in draft budget, allocated 2.6 per cent, almost SSP 108.5 billion to funding transfer to international treaties. Constituency development got SSP 30 billion just 1%.
The finance docket put aside SSP 96 billion, an approx. of 2.3 per cent for foreign mission arrears.
In addition, for peace implementation, SSP 93.8 billion (2.2%) has been allocated and Agriculture Bank of South Sudan got SSP 8.6 billion which is 0.9 per cent of the budget.
0.9% of the total amount, equivalent to SSP 35.7 billion is earmarked for clearance of carried forward arrears (cheques).
Dongrin added, “while 0.8%, an equivalent to SSP 34.3 billion is allocated to funding litigation and settlement of disputes.”
11 per cent, that is SSP 493.4 billion was allocated for capital expenditure, and mandatory expenditure such as paying Sudan tariffs, transportation and processing of oil got SSP 157 billion, 3.8%.
SSP 22.8 billion (0.5%) was allocated for funding transfer of 2 per cent to oil-producing states. SSP 34.2 billion was allocated for a funding transfer of 3 per cent to oil producing communities.
Minister of Finance revealed that Ministry of Petroleum was allocated SSP 34.2 (0.8%).
For debt repayment, SSP 286.6 billion, equal to 6.9 per cent was earmarked.