Sudan parliament reviewing 2010 budget

November 4, 2009 (KHARTOUM) – The Sudanese government sent to the national assembly its budget plan for the 2010 fiscal year aimed at achieving a 6% growth rate.
The proposed budget is projecting $10 billion in revenue and grants with $13.4 billion in expenditures but it is not clear how the $3 billion deficit will be funded though the government normally borrows from the banking sector.
44% of the forecasted revenue will be generated through the oil exports, 47.3% from non-petroleum sector and 8.3% from grants.
The Sudanese finance and national economy minister Awad Al-Jaz said the focus of spending is on the five-year plan in terms of agriculture, eliminating poverty, peace sustaining projects and attracting strategic partnerships.
Al-Jaz also said that the new budget will target a 9% inflation rate and limiting borrowing from the banking sector to 0.9% from the total GDP.
The Sudanese official noted several major infrastructure project including ones that will increase generation of electricity, new railroads and grain production.
Sudan is currently under a monitoring program from the International Monetary Fund (IMF) per a request from Khartoum last July to help weather the global economic crisis.
The impact of the recession took a toll on the oil prices that dropped from their 2008 records leaving the government with barely enough money to pay salaries and wages.
The IMF recommended changing tax codes and reducing spending on social programs to reduce the deficit but it is unlikely that any such measures before the April 2010 presidential and parliamentary elections.
(ST)