Home | News    Tuesday 9 October 2012

Sudan’s 2013 budget will not include oil transit fees: official

separation
increase
decrease
separation
separation

October 8, 2012 (KHARTOUM) – The recent deal with South Sudan over oil transit fees will not be reflected in the 2013 budget, the country’s finance and national economy minister said.

JPEG - 19.3 kb
Sudan’s finance minister Ali Mahmood Abdel-Rasool (Getty)

In statements carried by Sudanese local media, minister Ali Mahmood explained that the agreement, by which Khartoum will receive payments from landlocked South Sudan for every oil barrel exported, will be built into the budget only once the crude starts flowing and figures can be calculated with a degree of certainty.

Sudan’s economy took a strong hit when oil-rich South Sudan became an independent state in July 2011 leaving the north suffering from dollar shortages, soaring budget deficit and high inflation.

The government in Khartoum was hoping that the fees collected from Juba for exporting its oil should cover part of the budget hole left by the country’s breakup. However, South Sudan suspended its oil production earlier this year over disagreement with its northern neighbor on the fair charge for transporting the oil.

Khartoum’s 2012 budget had assumed it would receive around $36 per barrel in oil transit fees from South Sudan. The stalemate in oil talks between the two sides put economies of both nations in a bind.

Under the final deal signed last month, South Sudan will pay between $9.10 and $11 a barrel to export its crude through the north. Juba will also pay $3.08 billion to help Sudan overcome the loss of three quarters of oil production due to southern secession.

The Sudanese finance minister stressed that the main guideline governing the 2013 budget will be increasing the GDP through production and providing basic commodities for the people. He added that the government made one of its main goals to cut imports and attain self-sufficiency in sugar, wheat and cooking oil.

The implementation of austerity figures and expanding the social safety net will also continue next year, Mahmood added.

The minister made no mention of any further spending or subsidy cuts in the upcoming budget.

Last month the International Monetary Fund (IMF) called on Sudan to initiate further reforms including reforming the civil service and continue the privatization program.

Sudan took a number of steps such as downsizing its bureaucracy through reducing the number of constitutional post holders in both federal and regional governments from 572 to 318. It also announced elimination of five ministries, mergers between others, sacking of six presidential advisers and reductions in official perks.

The Sudanese finance minister however, complained that the government is facing a number of obstacles in slashing its spending as planned primarily due to non-responsiveness by state governments in adopting the measures and suggested that this may require an intervention by the central government to force compliance.

IMF figures project a sharp drop in revenue to 12.9% of GDP in 2012 compared to 18.7% last year. Expenditures however fell at a slower rate from 20.0% to 16.6% during the same period leaving a negative net balance that is expected to continue throughout 2013.

(ST)

Comments on the Sudan Tribune website must abide by the following rules. Contravention of these rules will lead to the user losing their Sudan Tribune account with immediate effect.

- No inciting violence
- No inappropriate or offensive language
- No racism, tribalism or sectarianism
- No inappropriate or derogatory remarks
- No deviation from the topic of the article
- No advertising, spamming or links
- No incomprehensible comments

Due to the unprecedented amount of racist and offensive language on the site, Sudan Tribune tries to vet all comments on the site.

There is now also a limit of 400 words per comment. If you want to express yourself in more detail than this allows, please e-mail your comment as an article to comment@sudantribune.com

Kind regards,

The Sudan Tribune editorial team.
  • 9 October 2012 08:28, by Northern Sudanese

    don’t worry sir, we have been told since last year that the coming 3 years will be hard for us, but you are only making it harder. you placed high prices and on the same time bring in southerners?

    repondre message

    • 9 October 2012 08:43, by Dinkawarrior

      "Juba will also pay $3.08 billion to help Sudan"
      That is what we need to hear from you! But don’t ever dream on our oil, we want you to demarcate of our border. In order to build our relationship, you must mark the 1956 as the really border.

      repondre message

      • 9 October 2012 16:06, by Hardball

        Sudan not counting on oil transit fee for their 2013 budget; that’s definitely common sense logic; you don’t count your eggs before they hatch!

        repondre message

    • 9 October 2012 11:56, by Anti Dinka’s

      Donkey Al-Bashir criminal Party knows very well, that this Agreement with the people he calls Insect we will never survive that long

      repondre message

    • 9 October 2012 18:05, by panchol

      Northern Sudanese.
      please you uncle minister of finance and economic planning is trying to tell that he wanted to make up Sudanese economic without oil transit fee of South Sudan.
      Great lier! you are about to suffer if the deals were not signed. You had closed the border with us but we have opened our border with East African countries.There is food in SS. OK?

      repondre message

  • 9 October 2012 08:32, by Dinkawarrior

    "Juba will also pay $3.08 billion to help Sudan"
    That is what we need to hear from you! But don’t ever dream on our oil, we want you to demarcate of our border. In order to build our relationship, you must mark the 1956 as the really border.

    repondre message

  • 9 October 2012 08:45, by Northern Sudanese

    don’t worry sir, we have been told since last year that the coming 3 years will be hard for us, but you are only making it harder. you placed high prices and on the same time bring in southerners?

    repondre message

  • 9 October 2012 09:01, by Jalaby

    Although they said the $3bn that the south will pay to Sudan is part of the oil deal,covers the loss of the separation,etc but my inner feeling always tells me that it is a bribe paid to Sudan to allow 4 freedoms agreement and not to deport Jonobean to their dream land paradise country that they have been waiting 4 long although they refused 2 go,cried and begged us 2 leave them

    repondre message

    • 9 October 2012 09:08, by Jalaby

      I think this type of separation is very useful because we still share the oil with the south around 30% now(if you add $3bn + $10 bbl/day),they will pay custom for every single goods we give them, they will pay fees for their goods that comes through Port Sudan, we will sell them back their oil with high fees after we refine it because they don’t have any refineries for now,

      repondre message

      • 9 October 2012 09:19, by Jalaby

        we can buy houses,lands,etc in the south and we can enter the south at anytime with no specific reason may be just to pee and come back to Sudan!
        In the other hand, Jonobean who live in Sudan will contribute positively to our economy since they’re cheap labors, the same way Hispanic people do in America, they’re cheap labors and work as:Pizza delivery,carpet cleaning,

        repondre message

        • 9 October 2012 09:25, by Jalaby

          garbage collector,picking up grapes,apples,watermelons (Bateikh), etc, it’s true that the cheap labors you’ve the best economy you get!
          Also we will never hear from Jonobean again words like:2nd class citizen, slavery, injustice,marginalization, etc because they’re foreigners now, more over, they will stop being "trouble maker" otherwise will be deported immediately!

          repondre message

          • 9 October 2012 09:41, by Observer

            Jalaby,
            Just shakes my head at you in amazement. You used to offer some reasonable comments but lately what you write is just absolutely staggering - and that is not in positive context.

            repondre message

          • 9 October 2012 14:38, by Ruach

            Jallaby:You are really commedian!What is true here is that you need South Sudan more they need you!Currently,there no much works attracting people of South Sudan in your drier desert zones!All opportunities are here which make your asshole president and any one of you happier for the deals as it will allow all of you to come and work here!Even Bashir ’s relatives have no jobs in the North....Con..

            repondre message

            • 9 October 2012 14:48, by Ruach

              and thus are eager to come for work here!I have seen no room for gays,immigrants and fake Arab in our soils by coming months.There is something which I don’t like from you north fake Sudanese,the lies!

              repondre message

    • 9 October 2012 09:26, by Trust God 27

      Jalabi
      You are wrong $3bn that the south will pay to Sudan is for buying the most contested areas, mark my comments and study it will, why should S Sudan pay Sudan this amount, while SS is lacking money too

      repondre message

  • 9 October 2012 11:32, by hellonearth

    JALABY YOU ARE A TRUE DREAMS TO THE WORDS. 3BN$ THAT SOUTH WILL PAY SUDAN IS FOR THE BIG GAP THAT YOUR COUNTRY IS EXPERIENCING RIGHT NOW. HAVE YOU FORGOTTEN THE RIOTS THAT WERE HAPPENING ALL OVER SUDAN? STOP DREAMING OF ABYEI. IT BELONGS TO THE REPUBLIC OF SOUTH SUDAN.

    repondre message

  • 9 October 2012 19:50, by James Maker Akok

    North Sudan Government is hoping for nothing, oil pipeline will never work with out border Map Demarcation Line of 1905 to 1956, North Sudan Government doesn’t know what South Sudanese people planning, South Sudanese people planning is dead to dead if this border Map demarcation line is not solve.

    repondre message

  • 9 October 2012 20:55, by ViVa Sudan

    oil pipeline will never work with out border Map Demarcation Line of 1956 YES & U WILL PAY $24.90 PER EACH 1 oil barrel SO WHO DREAMING U IDIOTS INSECTS .. JALABY WE WILL STILL CALL THEM 11ND CLASS LAWLESS PPL & THEY WILL NEVER BE ACCEPTTED IN OUR BELOVED SUDAN COZ THEY ARE TRAITORS WHO ARE SUPPORTING OUTLAWS TO KILL OUR PPL.

    repondre message

    • 10 October 2012 01:16, by James Maker Akok

      Viva Sudan
      Lol, kkkkkkkkk, don’t be mad, what I said is true Oil pipeline will never work to North Sudan. Is better for North Sudan Government to give up with Map border Demarcation line before South Sudan Government go for International Court. North Sudan will lose everything if South Sudan go for International Court, like help each other with resources as you know resources are inside South Sud

      repondre message

      • 10 October 2012 01:42, by James Maker Akok

        Viva Sudan
        I know North Sudan Government is very intelligent of deleting all really Map of Sudan that show map border line between South Sudan with North Sudan and put a wrong map border in case to cheat South Sudan but I’m more intelligent to got that Map, I have it now and I sent some copies to people and I’m still sending more. The bad thing, Heglig and Abyei are not inside North Sudan.

        repondre message

Comment on this article


 
 

The following ads are provided by Google. SudanTribune has no authority on it.


Sudan Tribune

Promote your Page too

Latest Comments & Analysis


Referenda in Scotland and South Sudan told a tale of two cities 2014-09-21 06:01:02 By Mahmoud A. Suleiman September 20, 2014 - This article comes against the backdrop of the referendum in Scotland and southern Sudan in the years 2014 and 2011, respectively, and the result was (...)

Undermining South Sudanese expertise’s is ironical! 2014-09-19 10:15:59 By Peter Gai Manyuon September 18, 2014 - The recent order from the Ministry of Labor and Public Service in the Republic of South Sudan that was issued on 16th of September 2014 is absolute (...)

Sudan - Colliding interests 2014-09-16 10:04:11 By Mohamed Elshabik September 15, 2014 - Sudan seems to be unconcerned by the current political crisis in the region. Amid a prognosis of full-scale war in South Sudan, unrest in Egypt, chaos in (...)


MORE








Latest Press Releases


Sudan Democracy First Group: Art as resistance – art as resilience 2014-09-09 12:34:15 Sudan Democracy First Group Art as Resistance – Art as Resilience September 8, 2014 - To mark the third anniversary of the resumption of civil war in Blue Nile and Nuba Mountains/South Kordofan, (...)

Sudan: Those behind unlawful killings and torture of protesters must be brought to justice 2014-09-03 13:13:43 Amnesty International Sudan: Those behind unlawful killings and torture of protesters must be brought to justice The brutal suppression of protest in Sudan must end, and members of the security (...)

National Dialogue in Sudan: Past experiences and current challenges 2014-08-27 06:18:22 Sudan Democracy First Group (SDFG) Since independence, Sudan has undergone a number of national peace agreements, some of which were observed and honored for short periods, others which were (...)


MORE

Copyright © 2003-2014 SudanTribune - All rights reserved.