November 4, 2013 (KHARTOUM) - The Sudanese Finance and National Economy Minister Ali Mahmoud Abdel-Rasool affirmed his ministry’s intention to continue implementation of the economic package which began in 2012 adding that it will be concluded in 2014.
In a statement submitted to the national assembly on Monday, Abdel-Rasool said that next year the government will launch a new round of subsidies cut on certain goods including fuel in order to reduce the budget deficit and stabilize the exchange rate of the Sudanese pound against the US dollar.
The minister disclosed that the national income this year through September 30th was 22 million pounds while expenses surpassed 24 million pounds.
He attributed the year-to-date deficit to higher spending on defense and strategic goods as well as payment of dues to oil companies which he estimated at $ 1.7 billion.
Abdel-Rasool said that the economic growth this year is projected to exceed the 3.6% included in the 2013 budget.
However, he acknowledged several negative factors impacting the economy including lack of resources available to fund public expenditures, increase in internal and external debt, structural unemployment and problems associated with domestic and international migration.
The Sudanese official also vowed to address the issues of minimum wage as decided by the government.
Ahmed Ibrahim al-Tahir, the speaker of Sudanese parliament called on the Ministry of Finance not to include the oil transit fees from South Sudan in the 2014 budget due to the nature of the unstable relations between the neighboring countries.
Late last month, the Sudanese government agreed to scale back fuel subsidies which caused prices of gasoline and diesel to increase by almost 100%.
A gallon of gasoline now costs 21 Sudanese pounds ($4.77 based on official exchange rate) compared to 12.5 pounds ($2.84).
Diesel also went from 8 pounds ($1.81) a gallon to 14 pounds ($3.18).
Cooking gas cylinders are now are priced at 25 pounds ($5.68) from 15 pounds ($3.40).
Violent clashes erupted between the demonstrators and security forces in different parts of the country leading to 70 deaths according to official figures and more than a 200 according to activists and opposition.
Senior Sudanese officials including president Omer Hassan al-Bashir have defended the measure saying the only alternative would be an economic collapse as the state budget can no longer continue offering the generous subsidies on petroleum products to its people.
Last year the Sudanese government rolled out an austerity package that saw the first round of cuts on fuel and sugar subsidies as well as reducing the number of ministries. It also effectively devalued the beleaguered currency with the goal of reducing exchange rate parity with the black market.
But the economic picture remained bleak with inflation rates at double digit figures which pushed ordinary Sudanese to dig deeper into their pockets to pay for food and other basic commodities.
The Sudanese pound also continued its free fall against the US dollar reaching 8.2 in the black market at one point last month.
Sudan’s oil boom that fuelled an unprecedented economic growth and a relative prosperity over the last decade came to an end with the independence of South Sudan in July 2011 which housed around three quarters of the crude reserves prior to the country’s partition.
(ST)
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