Gov’t surpasses revenue target by close to SSP100 billion

Gov’t surpasses revenue target by close to SSP100 billion
The council of ministers approve a budget for 2022-2023 financial year, which is an increment of SSP524 billion from the previous budget.

South Sudan surpassed the revenue target in the first two quarters by nearly SSP100 billion, said the Minister of Finance and Planning, Agak Achuil.

Agak was presenting the Fiscal Year 2022/2023 Draft National Budget proposal to the Revitalised Transitional National Legislature in Juba on Wednesday.

The budget aims to set out an estimate of government expenditure and the revenue projections that are likely to be realised to finance the estimated expenditure for FY 2022/2023.

“The revenue collected in the first two quarters was SSP 454.9 billion and was above the budget target of SSP 362.4 billion,’’ he announced.

“This is due to a rise in the crude oil price and an improvement in tax administration by National Revenue Authority (NRA),” the minister stated in the budget.

According to the budget, the ‘‘total spending on agencies in the last two quarters was 13.6 per cent lower than the projected agency spending of 50 per cent.’’ Wages and salaries accounted for SSP 26.9 billion, while goods and services accounted for SSP 60.7 billion.

‘‘In addition, capital expenditures, transfers, and other expenditures totalled SSP 5.4 billion, SSP 11.6 billion, and SSP 2.9 billion, respectively,’’ the budget read.

The minister said they were able to meet some of the statutory obligations in addition to the aforementioned expenses.

“These obligations include payments to Sudan (tariffs) of SSP 0.3 billion, oil-producing states/administrative areas of SSP 2.3 billion, only producing communities of SSP 3.5 billion, Oil for Infrastructure of SSP 107.6 billion, Future Generation Fund (FGF) of SSP 1.2 billion, oil revenue stabilization account (ORSA) of SSP 51.1 billion, transfers to the Ministry of Petroleum (3 percent) of SSP 3.5 billion, and NRA Operation fund SSP 3.2 billion.”

According to the Vice President for Economic Cluster, Dr James Wani Igga South Sudan registered an increase in non-oil revenue collection in November 2021.

Dr Igga said the country has managed to raise SSP7 billion in revenue since the beginning of the year 2021, compared to SSP1.5 billion in July 2020.

The vice president last year attributed the increase to the ongoing economic reforms that the government has been implementing since 2021.

He claimed that his cluster was working on a number of public financial management and procurement systems in order to boost non-oil revenue.

“Our non-oil collections were SSP 1.5 billion last year [in] July 2020.” “We actually climbed to the tune of SSP 7 billion just last October,” Wani said during a governor’s reforms

Dr. Patrick Mugoya, Commissioner-General of the National Revenue Authority (NRA), announced on May 13 that the NRA had surpassed its non-oil revenue collection target for the fiscal year 2021–2022 by SSP 64.4 billion.

This came after the government forecasted 58.2 billion SSP for the fiscal year 2021–2021.  The NRA, which was established in 2018, is tasked with assessing, collecting, administering, and enforcing taxation and revenue laws.

The launch is one of the measures required to achieve short-term fiscal austerity objectives by reducing reliance on oil revenues, strengthening the non-oil revenue sector, and strengthening expenditure control.