The Minister of Finance and Planning, Hon. Dr. Marial Dongrin Ater, has presented the Draft National Budget, Appropriation Bill, and Finance Bill for the Fiscal Year 2024/2025 to South Sudan’s Transitional National Legislature. The session was chaired by Speaker Rt. Hon. Jemma Nunu Kumba.
In his budget speech, Minister Dongrin acknowledged delays in the submission process but reassured the parliament of his readiness to execute the budget promptly once it is approved. He highlighted the nation’s macroeconomic outlook, pointing to stable global growth of 3% and a promising regional economic forecast.
He noted that Sub-Saharan Africa’s growth rate is projected to rise to 4.2% in 2024, with East Africa expecting a 4.9% growth, increasing to 5.7% in 2025. South Sudan, alongside Rwanda, leads the region with a forecasted growth rate of 6.8%.
However, Dongrin acknowledged that South Sudan’s real GDP contracted by 5% during FY2023/2024 due to severe flooding, drought, and the conflict in Sudan, which damaged the Dar Blend oil pipeline, leading to a shutdown.
This, coupled with disruptions in oil production, resulted in a 70% reduction in the country’s oil and gas output, with an estimated decline of 105,000 barrels per day.
To address these economic challenges, the minister urged parliament to support socioeconomic policies aimed at boosting agriculture, a sector crucial for food security.
The government has allocated SSP 255 billion in the FY2024/2025 budget for agricultural investment, while an additional SSP 75 billion is earmarked to stimulate strategic investments in the mineral sector to diversify the economy.
Minister Dongrin also proposed new regulatory measures to strengthen the financial and services sectors. He introduced the South Sudan Insurance Bill and the Betting, Gaming, and Lotteries Bill, which, if enacted, will create regulatory frameworks to boost revenue generation and promote market competitiveness.
The draft budget, approved by the Cabinet on August 2, 2024, proposes a total spending of SSP 4.172 trillion, with a resource envelope of SSP 2.258 trillion.
Expected revenue from oil is SSP 1.138 trillion, while non-oil revenue is projected at SSP 1.119 trillion, representing 50% of total revenue estimates.
To reduce the budget deficit, the minister outlined several measures, including resuming Dar Blend oil production and export to recover 70% of projected oil revenues (SSP 1.7 trillion).
He also stressed the importance of securing grants and concessional loans through partnerships, as well as aligning exchange rates between the official and parallel markets to stabilize the economy.
In his closing remarks, Minister Dongrin emphasized that the FY2024/2025 budget will prioritize initiatives benefiting citizens, including consolidating peace, honoring salary commitments, settling arrears, reforming the security sector, and promoting economic diversification.
The theme of the Fiscal Year 2024/2025 Budget is: “To Accelerate Economic Recovery through Improving Livelihoods, Sustaining Peace, and Investing in Critical Social Services and Agriculture.”
