GoSS Future Needs

Aggrey Tisa Sabuni

Ag. Under Secretary, MoFEP

GoSS

Current Financing Position Over 90% of GoSS Revenues come from

Oil Highly risky for Government budget to be

dependent on a single source of revenue Oil prices are volatile GoSS is working to increase its revenues

from non-oil sources, but it takes time to develop a tax base and tax administration framework

Raising Non-Oil Revenues GoSS is engaged in discussions with

GoNU counterparts to agree collection & sharing of national revenues collected in the South

MoFEP has prepared an interim order for Southern Sudan Personal Income Tax

Southern Sudan Tax Bill is being drafted Preparations underway to establish

Southern Sudan Revenue Authority

Current Expenditure Position 2007 GoSS Budget amounts to $1.5bn A large proportion of the GoSS Budget is

currently allocated to SPLA & Salaries (GoSS & States)

Defence spending remains a priority It will take time to streamline GoSS salary bill

Challenges include: Demobilisation of former combatants in the SPLA and

Organised Forces Provision of terminal benefits to excess personnel on

the Government payroll, particularly in the States

Capital Spending 30% ($452m) of 2007 GoSS Budget is

allocated to capital spending Approx $100m is counterpart for MDTF

projects, while $250m is for GoSS projects in Transport, Housing, Agriculture, Telecoms, Information & SPLA

Big concern for sustainability of capital spending is that MDTF donor funds have not been committed to enable completion of existing MDTF projects

Future Needs $170m of additional MDTF donor funding

required to complete approved MDTF projects Another $100m required to finance pipeline

projects (HIV, Agriculture, Private Sector Development, Environment)

Capacity Building Trust Fund needs $30m replenishment – GoSS training needs are enormous

Bilateral pledges also welcome, though must be co-ordinated with GoSS budget and other donor funding mechanisms