South Sudan increases spending plan in 2023/24

South Sudan has recently announced a significant increase in its spending plan for the upcoming fiscal year, with President Salva Kiir signing into law this year's national budget worth approximately $2 billion, a 33 per cent increase from the previous year. The country is facing economic challenges, but is aiming to focus on key priority areas to stimulate economic recovery and address security concerns. The budget allocation includes two-thirds of the budget going towards security spending, as the government aims to implement security arrangements and deploy unified forces as per the 2018 peace agreement. Additionally, funds will be allocated to states, capital expenditures, and clearing of arrears owed to civil servants. The contentious issue of a proposed 400 per cent increase in civil servants' pay sparked debates in parliament, with opposition parties suggesting reallocating funds from infrastructure projects. Despite disagreements, the budget was passed with plans for a supplementary budget to further increase salaries by 200 per cent. The priority areas in this year's budget are closely tied to the peace agreement and upcoming elections in 2024, with a focus on stabilizing the economy and investing in income-generating projects beyond oil revenue. However, challenges remain in closing the deficit gap and enhancing non-oil revenue, especially as the Sudan crisis affects oil exports. To address these challenges, the government is looking to increase oil production and non-oil revenue collection, aiming for a target of 40 billion South Sudanese pounds monthly in non-oil revenues to balance the budget effectively. Overall, the government's efforts to diversify the economy and boost revenue collection are crucial for ensuring sustainable economic growth and financial stability amid global uncertainties and internal conflicts.