Home | News    Tuesday 21 February 2012

South Sudan cuts non salary expenditures

February 20, 2012 (JUBA) — In an attempt to compensate the loss of oil revenue, South Sudan on Monday announced cutting into half non salary government spending, a month after shutting oil production.

After accusing Khartoum of confiscating some 6 million barrels, South Sudan decided to halt the production of its oil which represents 98% of its revenue. Talks over oil transit prices between the two parties are deadlocked but the African mediator announced its resumption this week.

The South Sudanese government made the statement days after the approval by the Council of Ministers on 17 February 2012, of an initial set of austerity measures authorising immediate reduction of government expenditures.

In an official release extended to Sudan Tribune on Monday, Kosti Manibe, minister of Finance and Economic Planning, explained that council approved cutting non salary expenditure into 50%; and a minimal reduction to block transfers (unconditional monthly grants) to States.

The measures will be effective upon signing by the President.

"The cabinet also approved that the salaries of all public employees be protected and that it will review the country’s priorities in order to meet proposed targets. The cutbacks are effective immediately and will ensure that the necessary funds are available for the continued operation of the government and security forces," reads part of the release.

Kosti stressed that the austerity measures will not affect the salaries of civil servants.

He also said his Ministry was intensifying efforts to increase collection of non-oil revenue and increased compliance with the existing Business Profits Tax, Excise Tax, and Personal Income Tax, the Ministry aims to triple non-oil revenue collection within six months.