Author: Koang Pal Chang | Published: November 3, 2024
Hon. Riaw Gatlier, a member of Finance and Economic Planning Committee addresses the public hearing on the proposed 2024/2025 fiscal budget at the Parliament building on Wednesday, October 30, 2024. (Credit: Lou Nelson/Eye Radio)
The parliamentary Specialized Committee on Finance and Economic Planning has revealed that the Ministry of Finance and Planning is the government’s leading overspending agency in the FY 2023/2024 budget due to unforeseen expenditures.
Hon. Riaw Gatlier, a member of the Standing Specialized Committee on Finance and Economic Planning, announced during the public hearing that ten sectors utilized the FY 2023/2024 budget.
The public budget hearing, a component of economic sector reform, was funded by the World Bank under the Public Financial Management and Institutional Strengthening Project (PFMIS).
The hearing provided a platform for citizens, civil society organizations, and various interest groups to offer input on the national budget, in alignment with a broader agenda to enhance transparency, accountability, and inclusivity in budgetary processes.
The budget for South Sudan’s 2023/2024 fiscal year projected gross revenues of SSP 1,837,873,440,803 against an estimated expenditure of SSP 2,105,014,441,619.
This resulted in a deficit of SSP 267,141,000,816, which accounts for approximately 4.6% of the country’s Gross National Product.
Hon. Riaw outlined that the budget for 2023/2024 was allocated across ten sectors, including Economic, Infrastructure, Social and Humanitarian, Rule of Law, and Public Administration.
Additional sectors funded were Education, Health, Security, Natural Resources, Accountability, and Transfers to states and the three administrative areas.
According to Gatlier, the Ministry of Finance and Planning overspent in the economic sector due to unforeseen expenditures, including funding for the Tumaini Initiative in Kenya.
The Finance Committee reported overspending in the infrastructure sector, largely due to the construction of the prominent Bahr el Ghazal road and developments in South Sudan’s airspace infrastructure.
Hon. Gatlier added that the Social and Humanitarian sector also exceeded its budget, driven by the influx of South Sudanese returnees and Sudanese refugees after conflict erupted in Sudan in 2023.
The lawmaker noted that overspending in the Rule of Law sector was due to operations by the South Sudan National Police in Juba and surrounding areas to enhance security.
He also cited the provision of food rations and the management of the security sector as key reasons for overspending in the security sector.
Hon. Riaw reported that the Public Administration sector overspent on the electoral institution, satellite services for the South Sudan Broadcasting Corporation, and activities of the Ministry of Peacebuilding.
He noted that the Education and Health sectors remained within budget, mainly due to delayed wage payments.
At the public budget hearing, the lawmaker stated that the security sectors stayed within the approved budget; however, the Ministry of Defense exceeded its allocation due to the nationwide provision of food supplies for soldiers.
According to Hon. Riaw, the high costs were driven by transportation expenses and impassable roads, which significantly raised the Ministry of Defense’s expenditures.
The lawmaker reported that the Natural Resources and Rural Development sector is underspent, largely due to flooding that impacted food production, although livestock and wildlife initiatives remain in development.
Hon. Riaw noted that the Accountability sector remained within its approved budget, primarily due to delayed salary payments.
Lastly, he explained that expenditures on transfers to states and the three administrative areas showed underspending, as these regions operate autonomously in revenue collection without interference from the national government.
In his observations, the lawmaker emphasized that the Ministry of Finance is not adhering to the guiding principles of reform outlined in the Public Financial and Accountability Act of 2011, as amended.
He pointed out a lack of financial discipline in both budgetary planning and recommended that Parliament impose punitive measures against institutions that fail to comply with public financial laws.
“Our recommendations are only two; the Ministry of Finance and Planning must adhere to budgetary discipline in accordance with the Public Financial Management and Accountability Act 2011 and the Public Financial Reform to stop malpractices in the appropriation of public funds. Two; the parliament to impose punitive majors against those institutions which don’t comply with public funds, the public financial act and other financial laws by not adhering to the guiding principle.” Hon Riaw Gatlier – Member of Finance Committee, Council of State.
For his part, Hon. Goc Makuac, a member of the Finance Committee, presented during the public hearing the sources of revenue utilized by ten sectors in the FY 2023/2024 budget.
He outlined four key steps to improve the country’s economy; supporting the agricultural sector and reviving previous agricultural initiatives, diversifying the economy, and streamlining the budget.
Hon Goc also called for empowering the South Sudan Revenue Authority to be the sole institution responsible for collecting non-oil revenue.