Tomori, NCMP -The minister of finance and planning has presented to the Council of Ministers over 218 billion SSP budget estimates with a deficit of 123 billion, 448,000 South Sudanese Pounds for the 2020-2021 fiscal year. South Sudan’s financial year covers 12 months, which runs from 1st of July to 30th June each year.
“A budget deficit occurs when expenses exceed revenue and show the financial health of a country.” an economist broached. South Sudan’s economy is sick, and the government is treating the sickness with a wrong medication.
One of the primary dangers of a budget deficit is inflation, which is the continuous increase in price levels. Budget deficits can lead to inflationary monetary policies, year after year.
Considering the fact that the presentation of the budget has significantly been delayed this year, many South Sudanese thought the government would have done a thorough analysis of the current economic situation of the country before the budget presentation. We expect the budget by law to be submitted to the national legislature by no later than the 15th of May of each financial year.
An analyst has raised concerns with the huge deficit, and with no apparent donor, is the government not just passing figures in the name of the fiscal budget?
The budget is very important because it helps the government make provisions to raise budgetary spending and promote savings. The budget is an avenue to ensure the country’s economic growth and aims to speed up it. If there is inflation, the government will look at ways to improve people’s spending power.
Is this what the 2020-2021 budget out to fix?