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Makuei says 400% salary increment a recipe for inflation

Author: Stephen Omiri | Published: Wednesday, August 16, 2023

A vegetable stall at Konyo-konyo market in Juba - Courtesy

The Minister of Information Michael Makuei says the 400 percent salary rise recently approved into law could be a recipe for inflation in the market.

Addressing a press conference in Juba On Tuesday, August 15, Makuei warns of serious inflation in the market since the government does not control a free market economy.

Minister Makuei says this is because traders are taking advantage of the free market economy by assuming that a rise in civil servant salaries will automatically increase the cost of goods and services.

“Even this 400 percent, which we are accepting now, is a recipe for very serious inflation because we are not controlling the market; we talk of a free market economy, and that free-market economy is being exploited by others,’ he said.

‘Once there is a rise in the salary, it automatically happens in the market, and it was not supposed to be like that.”

In the same event, he voiced his objection to the 600 percent salary increment proposal previously suggested by the parliament, which the Minister of Finance has promised to implement in five months.

The government spokesperson has also criticized SPLM-IO lawmakers for their decision to boycott the budget passed last week, saying the gesture will be another obstacle to the peace implementation.

On Friday, SPLM-IO lawmakers walked out of the extraordinary session of Parliament after the SPLM-IG and allies insisted on a 400% salary increment instead of the 600% that it proposed.

During the extraordinary session, the SPLM-IO lawmakers proposed an over 600 percent salary increment in contrast to the 400 percent approved by the executive.

The group then walked out of the sitting after the majority voted in favour of the executive suggestion.

Reacting to the boycott, Makuei said he was surprised to see the lawmakers reject a decision approved by a Cabinet partly formed by their own ministers.

But when contacted, SPLM-IO Acting Spokesperson says the cabinet was not in agreement about the recommended percentages.

Puok Both Baluang says the 400 percent salary increment was approved despite their objection because their ministers are a minority in the cabinet.

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