Home | News    Tuesday 6 December 2016

Sudan’s austerity measures reduce budget deficit: ruling party

separation
increase
decrease
separation
separation

December 5, 2016 (KHARTOUM) – Sudan’s ruling National Congress Party (NCP) on Monday said that the recent drastic economic measures have helped reducing the budget deficit from 5 to 1 per cent of the total national income.

JPEG - 26.3 kb
A vendor sells vegetables during Ramadan at a local market in north Khartoum August 3, 2012 (REUTERS/Mohamed Nureldin Abdallah)

In November, Sudanese government lifted fuel subsidies and increased electricity price in a bid to control a surge in inflation and stop the fall of Sudanese pound in the black market.

The head of economic committee at the ruling NCP, Mohamed Al-Zubair, pointed that the austerity measures aimed at reducing the budget deficit.

“The new economic measures have channelled subsides for the benefit of production rather than consumption,” pointed al-Zubair, saying that these measures did not create scarcity in basic commodities.

The NCP leading figure pointed that sugar, fuel, and gas are no longer subsidized , while the government still partially subsidies diesel and wheat.

In November, government increased the price of I petrol liter from 4.6 to 6.17 SDG and 1 diesel liter from 3.11 to 4.11 SDG.

In November, the Central Bank of Sudan (CBoS) introduced an incentive policy and increased the exchange rate by 131%. As a result, the official U.S. dollar price went up in banks to 15.8 SDG in comparison with to the former official rate of 6.5 SDG.

Al-Zubair told the official Sudan News Agency (SUNA) that Sudanese pound deteriorating exchange rate is attributed to decline in oil and gold exports that decreased by 20 per cent, non-implementation of economic agreements with South Sudan and the U.S. sanctions on Sudan.

“The new economic measures will have positive economic impacts as they were part of the National Dialogue recommendations,” pointed Al-Zubair, saying that government has allocated 4 billion SDGs to absorb the impacts of the austerity measures by increasing wages and providing health insurance for 700,000 families.

Al-Zubair went to say that the new economic measures will help attracting Sudanese expatriates’ savings estimated at $ 4.5 billion, increasing gold exports to $ 4 billion and other exports to $ 2 billion.

Before the increase of the official dollar rate, Gold traders reportedly smuggled their production to the markets in the neighbouring countries where they can sell their with high rates instead of the 6.5 SDGs.

Sudan has been under American economic and trade sanctions since 1997 for its alleged connection to terror networks and remains on the U.S. list of state sponsors of terror.

(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.

Comment on this article



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


s
Sudan Tribune

Promote your Page too

Latest Comments & Analysis


A new approach to peace 2018-04-23 06:16:35 By Miroslav Laják When the United Nations was created, its founders envisioned a different kind of world. A world in which disputes were resolved in meeting rooms and not battlefields. A world (...)

Bring Sudanese troops home now 2018-04-21 15:25:57 By Salah Shuaib The Sudanese troops fighting hard now in Yemen, who were sent there by order of al-Bashir, should return home. The process of implementing this task is much challenging. But, we (...)

Dissolution and formation of the Cabinet - 2013 2018-04-20 08:00:00 Amb Telar Deng The events that led to the 2013 dissolution of cabinet can be traced back to the deep mistrust that fermented back in 1991 when leaders failed to close ranks. After the 1991 (...)


MORE






Latest Press Releases


Petition on the Deteriorating Human Rights and Humanitarian Situation in Sudan 2018-04-22 10:01:20 UN Secretary-General, New York African Union Commission, Addis Ababa UN High Commissioner for Human Rights, Geneva Petition on the Deteriorating Human Rights and Humanitarian Situation in Sudan (...)

Abyei celebrates Mine Awareness Day 2018-04-05 08:52:03 4 April 2018 | Abyei - The United Nations Interim Security Force for Abyei (UNISFA) and the United Nations Mine Action Service (UNMAS) commemorated the International Day for Mine Awareness and (...)

Appeal for forgiveness and pardon of John Agou Wuoi 2018-03-07 08:28:08 H.E. Salva Kiir Mayardit, President and Commander-in-Chief, of the Sudan People's Liberation Army (SPLA), Republic of South Sudan (RSS), 5th February, 2018. Through: Hon. Michael Makuei Lueth (...)


MORE

Copyright © 2003-2018 SudanTribune - All rights reserved.