SOUTH SUDAN: Cabinet Approves 7 Trillion SSP Budget Amidst Warning Against Unauthorised Loans

By Deborah Akur Chol, South Sudan

The Cabinet has approved a long-awaited budget of 7 trillion South Sudanese pounds (SSP) for the fiscal year 2025/26, while issuing a clear warning against unauthorised borrowing practices. The Council of Ministers, led by President Salva Kiir, convened for the first time since March to discuss the budget, amid a pressing cash shortage that has resulted in many public servants going unpaid.

“The Council has firmly resolved that no individual shall sign loans on behalf of the government without adhering to proper legal procedures,” stated an announcement from the Office of the President, highlighting the government’s commitment to maintaining financial integrity.

The Cabinet has tasked the Minister of Finance and Planning with presenting the budget to Parliament for discussion and final approval. Although the proposed budget comes with a deficit of 1.5 trillion SSP, the Ministry of Finance has committed to enhancing revenue collection efforts to close this gap.

During the budget discussion, Minister of Roads and Bridges, Simon Mijok Mijak, outlined plans for a new road that will connect South Sudan to Ethiopia and the Port of Djibouti, a key infrastructure project aimed at facilitating crude oil exports to international markets.

President Kiir urged ministers to improve the efficiency and accountability of their respective institutions. Additionally, the Cabinet has imposed a ban on unnecessary tax and duty exemptions, which have previously resulted in significant financial losses for the government.

The approval of the 7 trillion SSP budget, though four months delayed, underscores the challenges faced by the government in financial management while striving to stabilise public services and rebuild trust in state institutions.