The budget, which sailed through the third and final reading, has had proponents support the new taxes as necessary to bolster revenue streams, while opponents point to the high cost of living

By Emmanuel Mandella

The Transitional National Legislature on Monday approved the 2024-2025 fiscal budget, totaling 4.2 trillion South Sudanese pounds. The passage of the budget, marked by a substantial fiscal deficit of 46%, comes with increased taxes and fees across various sectors, sparking a debate on the potential impact on citizens already burdened by economic hardship.

The budget, presented at its third and final reading by the Chairperson of the Specialized Committee on Finance and Economic Planning, aims to comply with the Public Financial Management and Accountability Act of 2011. Proponents argue that the new taxes are necessary to bolster revenue streams, while others cautious of the taxes at the height of the high cost of living.

Throughout the heated session, lawmakers highlighted the heavy toll these tax hikes could place on the public. Hon. Nyang Johnson, a vocal critic, stressed the disproportionate effect of higher passport fees, noting that such essential documentation would become unaffordable for many South Sudanese citizens.

Calls for strategic funding in essential sectors were loud and clear as Lawmakers advocated for a dedicated 10% of the budget to be allocated to agriculture. They emphasized that prioritizing this sector would strengthen food security and support rural livelihoods.

“Our agricultural infrastructure needs urgent modernization. Providing seeds, equipment, and training programs is essential to sustaining our economy,” remarked Hon. Samuel Deng, a proponent of increased agricultural investment.

Equally pressing were appeals for investment in health and education. Many MPs underscored that neglecting these sectors in past budgets has taken a toll on national development. The budget also attracted calls for better funding for the security sector, given the ongoing challenges in maintaining stability.

However, First Deputy Speaker Mary Oduol addressed concerns surrounding the higher taxes, acknowledging that while revenue generation is essential, the government must tread carefully.

 “There is a clear need for tax relief to avoid exacerbating the economic struggles faced by our citizens. We cannot overlook the real-world implications of this fiscal strategy,” Oduol stated.

Despite widespread reservations, the budget was passed, integrating several recommendations from MPs.

Speaker Jemma Nunu Kumba expressed cautious optimism lamenting that: “We are all happy that this budget has been passed finally. It is now in the hands of the ministry, who will take it to His Excellency the President for signing. Serious oversight by the National Legislature on its implementation is essential, and we hope all recommendations will be considered, particularly those concerning budget performance.”

In an exclusive interview with the City Review, Economists have voiced their views on the newly passed budget, with some warning that the heightened taxes could stifle economic activity.

“These measures risk constraining consumption and business growth. However, if paired with visible improvements in public services and strategic investments, the impact could be mitigated,” said Dr. Peter Lado, an economist based in Juba

The budget is now set to proceed to President Salva Kiir for his final assent. Lawmakers have urged the government to prioritize effective implementation that balances revenue generation with the welfare of the citizens, especially during an economically challenging period.

Meanwhile, calls have been made by the civil society, during public participation on the budget, on the need to prioritize critical sectors such as education and health, to meet the essential needs of the public.