South Sudan government unable to pay security forces due to dwindling oil revenues

South Sudan’s capital is witnessing protests over delayed wages, and employees are refusing to show up for work in government departments. The Associated Press said that most government ministries and other offices in Juba are empty of employees during working hours.

The agency expected the protests to expand in the coming days.

South Sudan’s economy is largely dependent on oil exported through neighboring Sudan, but the war in Sudan has reduced oil revenues and exacerbated the problem of official mismanagement in South Sudan.

This comes as the South Sudan Council of Ministers approved the proposed 2024-2025 budget draft with a focus on paying salaries to civil servants and regular forces and reducing travel allowances.

The budget proposal for the current fiscal year is titled “Accelerating economic recovery by improving livelihoods, supporting peace and investing in vital social services and agriculture,” Deputy Information Minister Jacob Maigo Korok said after a cabinet meeting chaired by President Salva Kiir.

The proposed budget aims to address costs related to the peace process, salaries and social services, Korok said.

He added that the budget was revised to address costs related to the implementation of the peace agreement, salary arrears for civil servants, regular forces and foreign missions, election-related expenses, and investment in agriculture, mining and social services.

“The budget estimates are 4.2 trillion South Sudanese pounds, and the fiscal deficit is 1.9 trillion pounds, which represents 45% of the proposed spending,” Korok explained.

He said in order to reduce the deficit, the government will resume exports of Dar blend, realign exchange rates, grants and borrowing, cut capital spending, and reduce foreign travel.

The cabinet had postponed in June the presentation of the budget for the fiscal year 2024-2025 as the country grapples with a severe economic crisis exacerbated by the ongoing conflict in neighboring Sudan.

South Sudan is ruled by a transitional government established after a 2018 peace deal between President Salva Kiir, opposition leader Riek Machar and other political figures.

Source: AP + Radio Tamazuj

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2024-08-09 23:08:31

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