Public Finances in Sudan and South Sudan

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Sudan

Public expenditures have grown sharply—from a low base of 7% of GDP in 1998 following the fiscal stabilization program to 22% in 2006. According to a report produced in late 2007 by the Poverty Reduction and Economic Management Unit of the World Bank, public financial management systems in Sudan were generally weak despite efforts by the authorities.[1]

In 2011, the CIA estimated Sudan's GDP per capita as $3,000[2] At the time of the referendum on January 9, 2011, oil accounted for 60 to 70 percent of government revenue in the North[3]

Sudan's finance minister said in early May 2012 that a dispute with South Sudan over oil transit fees has caused a 6.5 billion Sudanese pounds ($2.4 billion) gap in the country's public finances. Ali Mahmoud also said inflation in the first quarter of this year had risen to 21% compared to 12.9 percent in the same period last year[4]

South Sudan

GDP per capita in 2010 for South Sudan was estimated at US$1,546 by the National Bureau of Statistics for the Republic of South Sudan.[5]

In May 2011, the government of the then semi autonomous region of South Sudan on Tuesday said it would adopt electronic public finance management to seal graft avenues.[6]

In the South, the GOSS is establishing a system of public financial management virtually from scratch. The former SPLM Secretariat of Finance, which managed resources of around $100,000, has transformed itself into a Ministry responsible for managing over one and a half billion dollars annually, including significant external financing.[1]

As a result of the oil revenue sharing deal with the North, gross national income (GNI is defined as GDP less net payments to the rest of the world) is much lower than GDP at US$984 per capita. But this is still significantly higher than any country in East Africa. Export of oil amounts to 71 percent of GDP, and oil revenue accounts for almost 98% of total Government revenue.[7]

In April 2012, the Ministry of Finance and Economic Planning in South Sudan launched a campaign to increase revenue from non-oil sources. The campaign will see the ministry improve its tax collection systems to make it easier to conduct business.[8]

References

  1. 1.0 1.1 SUDAN Public Expenditure Review, Poverty Reduction and Economic Management Unit Africa Region, World Bank, December 2007.
  2. Sudan Profile, CIA World Factbook, Retrieved 31 May 2012.
  3. Sudan- From conflict to conflict, Carnegie Endowment', 16 May 2012.
  4. Sudan, S.Sudan oil dispute caused $2.4 bln public finance gap, Reuters, 7 May 2012.
  5. Release of first GDP and GNI figures for South Sudan , Republic of South Sudan- National Bureau of Statistics, 11 August 2011.
  6. South Sudan launches electronic public finance management, Sudan Tribune', 31 May 2011.
  7. South Sudan launches its first GDP estimate, World Bank Blog, 23 August 2011.
  8. South Sudan looking for non-oil revenue, Miraya FM, 26 April 2012.