World Bank skeptical on how South Sudan will finance its fiscal budget 2018/2019

The soon-to-be 500 banknote for South Sudan (File photo)

The soon-to-be 500 banknote for South Sudan (File photo)

August 12th 2018 (Nyamilepedia) – The World Bank said in a report released last week that it is skeptical on how South Sudan government would finance its fiscal budget which saw a 60% increase compared to that of the previous year.

South Sudan parliament last month approved the fiscal budget for the year 2018/2019 in which it allocated almost three quarters of the budget to the military despite signing peace with opposition groups.

“South Sudan’s cabinet approved the general budget for fiscal year 2018/19, which increased by about 60 percent to reach 584 million USD up from 366 million USD in FY17/18. It remains unclear how South Sudan will finance the budget, given its struggling economy amidst the ever-rising inflation and conflict. Spending continues to be skewed toward defense at the expense of poverty reduction,” the report said.

The World Bank released in July a report in which it said the credibility of the budget in South Sudan has eroded over the past years due to the ongoing civil war in the country and the unsustainable corruption by top government official.

“During execution, budget credibility is undermined by lack of transparency and the fact that budget outcomes per spending agency significantly differ from the approved budgets,” partly said the World Bank’s report.

Peace agreement must be implemented for economic revival  

The report further said the revival of the South Sudan economy needs the implementation of the signed peace agreement between the South Sudan government and opposition groups in the Sudanese capital Khartoum.