Finance Ministry says 2025-26 budgetary estimates, endorsed Tuesday by the Economic Cluster is aimed at accelerating the country’s economic recovery, promoting macroeconomic stability, and supporting the democratic process.

By Emmanuel Mandella

South Sudan’s Economic Cluster, chaired by Vice President Benjamin Bol Mel, on Tueaday approved a proposed national budget of 5.2 trillion South Sudanese Pounds for the 2025–2026 fiscal year, sparking somewhat hope for the long-awaited investments in public sector wages, infrastructure, and economic diversification. But behind the optimism lies a critical question: Can the new budget overcome persistent challenges and deliver real change?

The  budgetary proposals, which marks a sharp increase of over one trillion pounds from last year’s spending plan will soon be presented to the Council of Ministers for formal adoption.

Finance Minister Dr. Marial Dongrin described the fiscal blueprint as “a necessary response to the country’s pressing financial needs and a roadmap for recovery.”

The proposed budget, the finance ministry said, outlines clear national priorities, which includes strengthening agriculture and mining to unlock the nation’s vast potential, ensuring the timely payment of public servants’ salaries, and expanding humanitarian support to uplift vulnerable communities across the country.

According to Minister of Environment and Forestry Josephine Napwon, the lion’s share of funding will come from oil revenues, but with a strategic push to boost non-oil revenue through investment in agriculture and mining.

“We want to move beyond oil. Agriculture and mining can create jobs and reduce poverty. This budget is a bridge to a more sustainable economy,” Napwon told reporters.

By expanding agriculture and tapping into untapped mineral wealth, the government hopes to generate employment and reduce the country’s vulnerability to global oil price shocks.

For thousands of civil servants including teachers, health workers, and police officers the new budget brings renewed hope after years of delayed or unpaid salaries due to economic instability, inflation, and mismanagement.

James Kubako, a secondary school teacher in Yambio, said he hopes this time the government will walk the talk.

“We’ve heard promises before, but we still go for months without pay. If this budget can change that, it will restore morale and bring relief to families like mine.”

Despite its ambitious goals, the budget faces significant headwinds as heavy reliance on oil, which still accounts for over 90% of exports, leaves the economy exposed to price volatility among other economic shocks.

Weak public financial management systems and allegations of corruption have previously hindered effective budget execution. Insecurity along high-investment potential areas has also been a challenge.

Currency depreciation and inflation remain a threat to purchasing power and budget predictability.

However, in the latest trends, government has shown commitment to stabilizing security, creating alternative sources of income through non-oil sector divestment and realigning key ministries, including the crucial Foreign Affairs Ministry, to package the country’s image positive in the international market.

Observers, such as Dr. Emmanuel Riek in Juba, warn that without structural reforms and transparency, even large budgets may fail to meet targets.

“Money alone can’t fix the entire process. Accountability will. There has to be transparency, efficiency and serious commitment. Otherwise, the budget may only a promise on paper,” he explained.

Civil society applause

Last week, the civil society embraced the swift release of the finance bill. Edmund Yakani, Executive Director of the Community Empowerment for Progress Organization (CEPO), praised the Ministry of Finance and Planning and the parliamentary committee responsible for the budget for sharing the 2025–2026 Financial Bill in early June, one month ahead of the planned public hearing.

“We are impressed. This is a commendable step toward transparency and public accountability. Citizens now have a rare opportunity to scrutinize the bill and ensure that it reflects their priorities,” Yakani said, acknowledging that already received copies of the bill and is preparing to share them with other civil society groups ahead of a civil society observation roundtable.