Home | News    Friday 19 December 2014

Sudan says drop in world prices of oil, wheat offers reprieve to budget


December 18, 2014 (KHARTOUM) – The Sudanese government said on Thursday that the global decline in oil and wheat prices allowed Khartoum to reduce subsidies on fuel and bread and helped curtail the import tab which currently stands at $650 million.

PNG - 160.6 kb
Sudanese finance minister Badr al-Din Mahmoud

Khartoum appears reluctant to proceed with another round of subsidy cuts following the violent protests that followed the previous round in September 2013.

The price of oil touched its lowest level since 2009 when the world economy was going through a financial meltdown. Analysts attributed this collapse to high oil production from the United States which has overwhelmed demand at a time of lacklustre global economic growth.

According to finance minister Badr al-Din Mahmoud, his ministry has been able to boost spending on social welfare which he revealed that it has reached 410,000 families at an average of 150,000 Sudanese pounds per family in addition to the expansion of health insurance to cover an additional 200,000 families.

He noted that that students and handicapped continue to be covered as well as the provision of free emergency treatment in hospitals and free treatment for children under the age of five.

On increasing wages, the finance minister said that the president has formed a committee to look into the matter and then report on it.

He stressed that they were able to fulfill all financial obligations and improve pensions.

Mahmoud announced that the 2015 budget will not contain any new taxes and that instead they will benefit from the recommendations of the tax and customs reform committee especially with regard to broadening the tax umbrella and improving collection.

The Sudanese official went on to say that they satisfied all dues to peace funds established in accordance with agreements related to conflicts in Darfur and East Sudan.

He noted that the rainfall this year has strengthened export capacity for oilseeds and other crops which contributes to lowering inflation by 20%.

He projected a surplus in revenues for 2015 which will help cover several spending items such as wages and social spending.

The cabinet approved in its weekly meeting today chaired by president Omer Hassan al-Bashir the 2015 budget as presented by the minister of finance.

The International Monetary Fund (IMF) said this month that Sudan has achieved satisfactory progress in achieving goals set by the Staff-Monitored Program (SMP).

The IMF further said that it expects non-oil growth to hit 2.9% this year as a result of strong gold extraction and a rebound in agriculture due to favorable weather.

“Inflation is expected to drop to 29 per cent by year-end from 47 per cent in July as the one-off effects of the September 2013 fuel price increases dissipate, monetary policy is tightened, and food prices decline owing to the expected good harvest. The fiscal deficit is expected to narrow to about 1.0 per cent of GDP,” it added.

For next year, the IMF said it expects a solid growth driven by gold, agriculture, and oil.

“The outlook for 2015 has improved but is subject to domestic and regional risks. Real GDP growth is projected at 3.4 per cent supported by a good harvest, robust gold production, and the recovery of oil production,” it said.

Sudan’s GDP is estimated to have grown at 2.7% in 2013 and projected to stand at 3.0% in 2014.


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.

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

South Sudan and the inhumanity of the death penalty 2019-02-20 12:35:43 By Kur Ayuen Kou I am deeply appalled by the continuous use of the death penalty as the best form of punishment in our fractured society. In a span of one week, South Sudan has carried out six (...)

Evidence suggests inevitable victory of the 3rd Sudanese Revolution 2019-02-20 12:24:17 By Mahmoud A. Suleiman This is Third Sudanese Revolution, which broke out in December 2018, and has been going on for the Sixty Two days without a pause is worthy of Triumphant Victory. It is as (...)

Sudan’s December Revolution is not an Arab Spring 2019-02-16 08:14:10 By Mubarak Ardol Why the Sudanese have decided to put an end to the regime which has ruled them for three decades. Why is this happing now? It is known that Mr Bashir came to power in Sudan by (...)


Latest Press Releases

Ethnic Murle politicians say enough to cattle raiding 2018-12-28 09:32:00 December 27, 2018 (JUBA) - Murle political leaders in Buma state have vowed to end the practice of cattle raiding and child abduction by individuals in the community. Jodi Jonglei, who is also (...)

CEPO: South Sudan Opposition Alliance (SSOA): Stop politics of split and focus on R-ARCSS implementation 2018-12-26 09:53:29 26th December, 2018. South Sudan Opposition Alliance internal leadership change frication is disturbing and demoralizing public opinion. The big question CEPO is raising, will SSOA be a strong (...)

Progress observed at end of second month of R-ARCSS implementation 2018-10-22 06:44:02 Press Release 21 October 2018 South Sudanese government released 24 detainees in the implementation of the revitalized peace agreement said the International Committee of the Red Cross (ICRC) (...)


Copyright © 2003-2019 SudanTribune - All rights reserved.