South Sudan Faces Economic Crisis as Payments to Government Agencies Suspended
The Ministry of Finance and Planning in South Sudan has announced the suspension of payments to government spending agencies as the fiscal year 2023/2024 came to a close, leaving civil servants unpaid for months. This decision has worsened the economic crisis in the country, which is already struggling with severe inflation and a weak national currency.
In addition to these challenges, a major oil pipeline breakdown in February 2024 has further impacted the economy, leading to sharp price increases and financial difficulties for families. The government’s decision to suspend payments is in line with the Public Financial Management and Accountability Act (PFMAA-2011), highlighting the ongoing financial struggles South Sudan is facing.
Finance Minister Awow Daniel Chuang has unveiled a preliminary draft of the fiscal year 2024/2025 budget, totaling 2.4 trillion South Sudanese pounds. While details remain undisclosed, the government aims to allocate 10 percent of the budget to the agricultural sector to support the economy.
As South Sudan navigates these economic challenges, citizens are hopeful for stability and eagerly await further developments in budget negotiations.