The Financial Challenges Facing South Sudan: A Closer Look at Revenue Collection and Salary Payments
By Deng Akuei Kur
In a recent statement, Eng. Awow Daniel, the Minister of Finance & Planning in South Sudan, highlighted the critical issue of revenue collection and its impact on the timely payment of salaries for government employees. The Minister emphasized the country’s reliance on the South Sudan Revenue Authority (SSRA) for funding, pointing out a significant gap between the total salaries due and the amount collected by SSRA. This financial imbalance has led to delays in salary payments, with implications for public sector workers across various departments.
According to Eng. Awow Daniel, the total monthly salaries amount to approximately 85 billion South Sudanese Pounds (SSP). However, SSRA’s revenue collection stands at only 25 to 30 billion SSP, leaving a substantial deficit in meeting payroll obligations. The Minister explained that this shortfall necessitates a waiting period of three to four months to accumulate enough funds to cover a single month’s worth of salaries. The primary reason cited for this financial strain is the drastic reduction in revenue from oil exports, which has decreased by as much as 70%. Additionally, a portion of the available revenue is earmarked for essential infrastructure projects such as road construction, further limiting the funds available for recurrent expenditures like employee salaries.
The challenges outlined by Eng. Awow Daniel underscore the urgent need for strategic financial management and revenue diversification in South Sudan. Addressing these issues requires a multi-faceted approach that includes enhancing revenue collection mechanisms, exploring alternative sources of income generation, and prioritizing budget allocations to ensure timely salary payments for civil servants.
As South Sudan navigates its economic landscape amidst evolving global trends and internal challenges, effective fiscal policies and transparent governance will be crucial in overcoming financial hurdles and fostering sustainable development.
