South Sudan’s cabinet has met for the first time in months and approved a long-delayed budget, as the country grapples with a severe cash shortage that has left many public servants unpaid.
The executive branch, which had not convened since March, signed off on a 7 trillion South Sudanese pound (SSP) budget for the 2025/26 fiscal year during a meeting on Friday chaired by President Salva Kiir.
The budget’s approval is months behind schedule, a delay that had drawn recent criticism from the national parliament and governance experts. The fiscal year begins in July.
Following the meeting, information minister and government spokesman Michael Makuei told reporters the spending plan includes a deficit of 1.5 trillion SSP. He said the finance ministry would “intensify revenue collection” to reduce the shortfall.
The finance minister has now been instructed to present the national budget to parliament for debate and final approval.
Measures to tackle economic woes
The cabinet announced several measures aimed at addressing the country’s financial troubles. It has banned “unnecessary tax and duty exemptions,” which Makuei said had cost the state billions of pounds.
It also ruled that no official may sign loans on behalf of the government without following the proper legal procedures.
President Kiir directed all ministers to improve performance and strengthen accountability across government institutions, the spokesman added.
These steps come as the nation faces a critical shortage of physical cash. Commercial banks in the capital, Juba, and other major cities have been unable to meet customer demand for currency.
The crisis has left government employees, including members of parliament and security forces, unable to access their salaries for months. Many banks have imposed strict daily withdrawal limits, sometimes as low as 50,000 SSP.
New road project
During the cabinet meeting, the minister for roads and bridges outlined plans to construct a road linking South Sudan to Ethiopia, with a long-term goal of connecting to the port of Djibouti. Officials described the proposed route as a future key export corridor for the country’s crude oil.
South Sudan’s economy remains heavily dependent on crude oil revenues. Official figures indicate that oil production has recently stabilized at more than 170,000 barrels per day.