CNBC – 25 July 2014
In late June, South Sudan’s finance minister Aggrey Tisa presented an unfathomable budget to parliament for July 2014 to June 2015.
While in a state of war, and with a complete oil shutdown in Unity state and a partial shutdown in Upper Nile, the ministry of finance has decided that it can increase spending on government agencies.
To achieve this, it believes that it can increase oil income by 23% and non-oil revenue by 35%. This is wildly unrealistic.
The budget is very much a budget for war. Military spending has increased from 47% to 56%, while spending on health and education combined amounts to just 11%. Just 4% is devoted to infrastructure development.
This is an interview I did on the subject for CNBC’s Closing Bell Africa programme.