Jacob Maiju Korok, Deputy Minister of Information addressing the media after a Council of Ministers meeting on Friday, October 20, 2023. (Photo: Charles Wote)

The national cabinet has passed a 4.2 trillion South Sudan Pounds fiscal year 2024-2025 budget – a month after a first draft was rejected and a former finance minister was directed to make some amendments.

New Finance Minister Dr. Marial Dongrin presented the financial year budget which prioritizes salary payment, peace implementation and agriculture, on Friday as the country endures catastrophic inflation.

The revised financial estimate is almost double the amount in the rejected draft of 2.4 trillion pounds – presented by former finance minister Awow Daniel Chuang.

Deputy Information Minister Jacob Maiju Korok said the fiscal year budget that is yet to pass through the parliament, aims at accelerating economic recovery through improving livelihood sustaining peace and investment in critical social services and agriculture.

He said the projected fiscal deficit is SSP1.9 trillion, which is almost half of the annual national revenue estimated at SSP2.3 trillion.

“To reduce this deficit, the government will resume the Dar Blend exports, undertake exchange rates realignment, grants and borrowing, expenditure rationalization, cut down on capital expenditure and cut foreign travels,” Korok said, addressing reporters after the cabinet meeting.

The government has been struggling to meets its expenditures since the last financial year budget, after a severe inflation weakened the national currency as a result of a major breakdown in pipeline transporting 60 percent of the crude oil to Port Sudan in February 2024.

The situation has left civil servants unpaid for about 10 months while triggering a sharp increase in commodity prices and leaving families struggling to feed themselves.

On July 5, Korok disclosed that the financing and expenditures of the budget depend on three scenarios; when oil production is fully operational, and when there is partial flow of oil and non-oil revenue as the main source of revenue, and when there is no oil revenue.

In scenario three, the official said the government could be forced to rely on non-oil revenues and grants and loans, while adopting austerity measures for it to operate to bare minimum.

He said the cabinet suggested the second scenario, in which there must be tremendous cut in expenditure and the government will only pay salaries, wages and minimal expenditures.