Home | News    Thursday 6 December 2012

Sudan’s 2013 budget submitted to parliament containing increased fees to cover subsidies

separation
increase
decrease
separation
separation

December 5, 2012 (KHARTOUM) – The Sudanese parliament today received the 2013 budget proposal from the government that includes hikes on federal car licensing fees drawing criticism from lawmakers.

JPEG - 20.2 kb

The government defended the measure saying that it is necessary to cover part of the fuel subsidies which is now flirting with 5 billion pounds according to remarks by the finance minister this week.

Under the proposed budget licensing fees for cars with less than 1,000cc will now be 50 pounds; between 1,000cc-2,000cc to 200 pounds; 2,000cc and above at 250 pounds.

But MP Babiker Mohamed Tom criticized the increase saying that it amounts to double taxation asserting that it is in essence a state fee adding that it will impact transportation prices for ordinary citizens. He said an alternative would be to bump value added taxes on Telecom.

Tom also pointed out to an increase in airport exit fees from 35 pounds to 50 in the budget.

The government said that the 2013 budget projects 25.2 billion Sudanese pounds (SDG) in revenues and 35.0 billion SDG in expenses leaving a deficit of 10 billion SDG ($1.5 billion) which equals 3.4% of the country’s Gross Domestic Product (GDP).

The deficit will be financed up to 87% (7.6 billion pounds) from domestic sources including 2 billion SDG from the central bank.

The budget allocates 555 million SDG for health and education sectors, 8.6 billion SDG for security, 60.0 million SDG for agriculture and 1.5 billion SDG for what is known as "sovereign sectors" which includes presidency, council of ministers, foreign ministry, justice ministry, defense ministry and federal affairs ministry.

The fees to be received from South Sudan for exporting its oil through Sudan’s pipelines are not included in the 2013 budget. Khartoum has yet to give the green light to Juba to resume its oil production citing the need to implement security agreement first.

The government is looking to completely phase out subsidies but has yet to announce a timeframe. This summer certain subsidies on food and fuel were partially lifted drawing rare but small anti-government demonstrations.

Sudan is subject to comprehensive U.S. financial and economic sanctions and is unable to borrow from international institutions or rich western nations due to arrears and its hefty external debt. Oil-rich Arab Gulf nations have been reluctant to adequately assist Sudan despite Khartoum dispatching delegations over the last year.

The Sudanese government’s strategy to overcome the secession of the oil-rich South Sudan last year is based on boosting gold exports and expanding oil exploration efforts.

The finance minister said that Sudan’s oil production will reach 150,000 barrels per day (bpd) from 115,000 bringing $300 million in revenues.

He added that gold exports reached between 47 and 48 tonnes by November and were expected to rise above 50 tonnes annually, bringing in more than $2 billion a year.

But according to Reuters some analysts question the accuracy of official forecasts as too optimistic, and say Sudan will struggle to stabilize its economy without collecting oil fees from landlocked South Sudan.

(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.
  • 6 December 2012 15:53, by Shadrack Nuer Machut

    That is an indication of vigilant parliament. Therefore, all MPs must be detailed in order to define the financial nature of next years to come in South 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


2015 elections are not a priority for Sudanese 2014-07-23 04:35:55 By Mahmoud A. Suleiman July 22, 2014 - This article comes against the backdrop of the news that reported the announcement of the National Elections Commission (NEC) that it had prepared the (...)

Bashir rests assured laden-burden on the Sudanese people’s shoulders 2014-07-14 06:09:16 By Mahmoud A. Suleiman July 13, 2014 - Omer al-Bashir believes that his continuing in power better protects him from tracking and prosecution by the International Criminal Court (ICC). He clings (...)

Lack of equity: A cause of many conflicts in Africa 2014-07-14 06:05:33 By Francis Ayul Yuar Nyok July 13, 2014 - It should be kept in mind that Africa crisis is not unique, more or less all the countries of the Sub-Sarah Africa are plague with acute poverty and in (...)


MORE








Latest Press Releases


Memory, healing and transformation in South Sudan 2014-07-23 05:55:08 Memory, Healing and Transformation in South Sudan A Working Paper by David K. Deng July 2014 Contents Introduction 1 What is memorialization? 2 Timing 2 Risks 3 Principles 3 Integrity 3 (...)

South Sudan: Independence Day marred by ongoing war crimes and looming famine 2014-07-09 01:39:56 AMNESTY INTERNATIONAL PRESS RELEASE 8 July 2014 South Sudan: Independence Day marred by ongoing war crimes and looming famine · Both sides to the conflict committing war crimes and crimes (...)

UN urged to probe alleged cover-ups and manipulations by its mission in Darfur 2014-06-26 05:40:52 Strengthen Peacekeeping Mission’s Rights Reporting, Civilian Protection (New York, June 25, 2014) – The United Nations secretary-general should investigate alleged cover-ups and manipulation of (...)


MORE

Copyright © 2003-2014 SudanTribune - All rights reserved.