The Transitional National Legislative Assembly (TNLA) on Tuesday directed the Ministry of Finance and Planning to table any loan to be borrowed for approval.
Addressing legislators during a report on the Transitional State Forum, the Chairperson of the Public Account Committee, Justin Joseph Marona, said that would restore trust in the country’s debt management system.
“It directs the Ministry of Finance and Planning to allow loans at national and sub-national levels to be tabled and approved by parliament in accordance with provisions of Public Financial Management and Accountability Act, 2011,” said Marona,
“This way, the lenders may restore legal trust on our debt management system and credibility on the country’s Personal Financial Management reform trend,” he added.
The Chairperson of the Parliamentary Committee for Information and Communication, Oliver Benjamin Mori, said parliament discovered that most loans were not effectively utilized.
“But in most cases, these loans are not effectively utilized for the intended purpose. Instead of making investments, these loans are consumed, maybe for salaries or other unnecessary services,” Mori said.
South Sudan is at high risk of debt distress, with the debt-to-GDP ratio estimated at 34.5% in 2023, according to a new report of the African Development Bank Group (AfDB).
The current account balance improved to a surplus of 7.0% of GDP in 2022/23, due to a gradual uptick in oil export revenues, it said.