Juba adopts austerity measures

South Sudan has imposed 50-per cent cut on spending as it struggles to fill revenue gap created by the shutdown in oil production.

South Sudan has imposed 50-per cent cut on spending as it struggles to fill revenue gap created by the shutdown in oil production.

The cut affects all sectors except security, health, education and infrastructure, Information minister Barnaba Marial Benjamin said.

“Agencies will be given a monthly operating and capital spending limit for February equal to 50 per cent of their regular minute,” Dr Marial announced in Juba Monday.

But the minister said the salaries, which accounted for about half of the country’s annual budget, would not be affected, but that a minimal reduction would be imposed on block transfers to all the 10 states.

Mr Abraham Diing Akoi, the Economic Policy and Communication Officer at the ministry of Finance, said the cuts were to be effected immediately.

At the same time, Mr Akoi said, the Ministry of Finance and Economic Planning was intensifying efforts to increase collection of non-oil revenue through enforcement of the Tax Act, 2009.

“Through 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,” Mr Akoi said.

 

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