Home | News    Monday 31 December 2012

Bashir’s lifting of minimum wage leaves Sudan’s 2013 budget subject to amendments

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December 30, 2012 (KHARTOUM) – The Sudanese president Omer Hassan al-Bashir on Sunday preempted the work of a committee reviewing the issue of wages and ordered the lifting of minimum wages effective next January.

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Sudanese President Omar al-Bashir attends the inauguration of Baleela airport near Kalshubi in Southern Kordofan, on December 27, 2012 (Getty Images)

Sudan’s official news agency (SUNA) said that Bashir conveyed his decision during a meeting he held with the head of Sudan’s labor union Ibrahim Ghandour and other senior officials from the union.

Ghandour was quoted by SUNA as saying that the new minimum wage will be 425 Sudanese pounds (SDG) which is comprised of the old minimum wage of 165 SDG, 200 SDG in pre-existing bonuses granted previously by Bashir and a new increase of 60 SDG.

Based on official exchange rate the minimum wage has jumped from $37 to $96.

The issue of raising wages was a topic of hot discussions between Ghandour and the finance minister Ali Mahmood Abdel-Rasool who insisted that the country cannot afford bumping pay for workers given the current economic situation.

Abdel-Rasool has previously said that doing so would require either raising taxes or further cutting subsidies on fuel and other basic commodities which eats a big chunk of the budget.

But the labor union head rejected either options and hinted at a strike should their demands not be met.

The Sudanese presidency established a commission to review the implications of raising wages and was required to submit its recommendations by the end of next March.

Abdel-Rasool has stressed that should an increase in pay be approved then the 2013 budget endorsed by the parliament this month needs to be amended.

Today’s report on SUNA did not explain how the hike in wages would be funded or when next year’s budget will be adjusted to reflect Bashir’s decision.

Speaking by phone on privately-owned Blue Nile TV this month the finance minister scoffed at Ghandour’s assertions that the wages will be raised starting January 2013.

“After the parliament approved the [2013] budget….[how] are we going to do something [spend more money] outside of the budget?” Abdel-Rasool posed the question.

The national assembly approved the 2013 budget proposal submitted by the government this month which 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).

Some analysts disputed the figures saying the deficit will likely be higher.

Sudan lost 75% of its oil reserves after the southern part of the country became an independent nation last July denying the north billions of dollars in revenues. Prior to the country’s breakup, Sudan produced close to 500,000 barrels but now its output is limited to 140,000 barrels per day. Oil revenue constituted more than half of the Sudan’s revenue and 90% of its exports.

The value of the Sudanese pound has deteriorated sharply against other major currencies and particularly the U.S. dollar which is now trading at 7 SDG compared to an official rate of around 4.4 SDG.

This has fueled inflation which is now at 46% due to the fact that Sudan imports a significant portion of its basic commodities. Ordinary Sudanese citizens are increasingly frustrated about their inability to make ends meet.

(ST)

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  • 31 December 2012 04:57, by Shadrack Nuer Machut

    Be dying alone Khartoum! Don’t again ask for oil flow! This time around South Sudan is not allowing oil to flow through the pipes of Sudan. War is the option until NCP is toppled. To Hell NCP.

    repondre message

    • 31 December 2012 08:07, by South South

      Iam laughing, if the minimum wage in Sudan is 425 SP and USA $ is 7.1 SP, so salary in Suadn will be $ 60 a month, but wait a minute,right now minimum wage is 165 SP which is $ 20 per month. According to study the real cost of living is 1947 SP per month. Poor people, they can not eat meat.

      repondre message

  • 31 December 2012 06:42, by Son of Ngundeng

    Sudanese do not waste your time for budgeting the 2013 already you become bankrupt even you try without our oil nothing will succeed think hard and better, to go back where your grandfathers come from that will be only sollutoin.

    repondre message

  • 31 December 2012 11:57, by Nyakuzuny

    O my God were are the Dead body come from? Ohmar Aljerima and secondly Sudan will Not Lossing only 75 oil reserves , tell Omhar Aljerima that Sudan Will Lossing more reserves of the Sudan Reserves oil because of Separation b/n South and the North , we will taking our Oils in all of our Borders Areas Starting from Abyie and Panthou .

    repondre message

  • 31 December 2012 12:46, by Mapuor

    Minimum in All African countries should be 100 USD instead of 36 and 96 USD.In South Sudan the minimum wage is now 62.5 USD.

    repondre message

  • 31 December 2012 15:55, by panchol

    Bashir!
    No oil flow no peace in Sudan if your party still there. This is going to be the last warning if it happens for your forces to attack us.
    president of leirs, where do you get money..

    repondre message

  • 31 December 2012 20:31, by Pinyin Gatkuoth

    Hey Bashir this year u will follow ur freind Seddam Hussein, don’t bother ur self for budget of 2013, ur are death body.
    AYOoOOOOO Bashir Ayoooooo Bashir it’s ur time ya terrorist or killer

    repondre message

  • 31 December 2012 22:54, by Northern Sudanese

    2013!!!!!!!!!
    Happy new year to all my friends & enemies :D

    repondre message

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