The government, through the Ministry of Finance and Planning with support from the United Nations Children’s Fund(UNICEF), has started budget formulation consultation ahead of the reconstitution of the Transitional National Legislative Assembly to pave way for the budget for fiscal year 2021/22.

An estimate of over SSP230 billion meant for the budget remains subject to change as consultation continues, according to the Minister of Finance, Athian Diing Athian.

“As we put it before, we are still for consultation. This number may change in the new measure that may arise,” said Diing in a consultation workshop last week at Pan African Hotel in Juba.

“As you all know, this is primarily to inform the agencies, government institutions and private institutions as well as individuals about the resources prepared for this budget,” he added.

Athian said the formulation of the budget comes from the national plan of the government which requires more consultation and planning.

“This is just a consultation [process], not biding and still calls for more contributions in terms of views and ideas for this budget,” he added.

 So far institutions involved in the consultation process include the Ministry of Finance and planning, education sector, private sectors, and stakeholders.

Meanwhile, the Undersecretary for Planning at the Ministry of Finance, Ocum Genes Karlo admitted that the ministry had the budget but the absence of a reconstituted parliament was the stumbling block to the process.

“We need you to come out with the plan on what we should do before going to the council of ministers, we need to put things in order,” said Ocum, during a presentation at the same event.

He revealed that the government has limited resources adding that that the government would plan depending on the resources available.

“The government depends entirely on oil revenue. During the coronavirus pandemic [the government] lost a huge percentage of the oil revenue because of the low price of the oil in the world market,” said Ocum.   

“We are borrowers. We need to increase in production of agricultural products and many others because what we are importing is more than what we are exporting,” he added.

He said for the nation to budget effectively, there was a need to adapt monetary policy and other international financial policy framework.

“The higher amount of borrowing the higher amount of inflation in that particular country,” he added.

According to a UNICEF report last year, a large amount of donor funding is currently to the government has been misappropriated by a system that has surrendered its citizens to foreign aid and humanitarian handouts.

The Ministry of Finance and Planning and UNICEF use the standardized budget brief methodology that aims to publish a report within 3-6 months of the start of the financial year to provide insight into the budget for the existing fiscal year.