Sudanese govt. plans to cut subsidies again in 2016

The Sudanese Minister of Finance has urged the Parliament to endorse the government’s plan to introduce new cuts to subsidies on basic goods and services in next year's budget.

Minister Badreldin Mahmoud said in remarks before the federal Parliament on Monday that during the past year SDG10.5 billion ($1.7 billion) were allocated to subsidies.

The subsidy cuts on wheat, electricity, and fuel will enable the government to direct funds to other productive sectors, in order to bring the country out of the current “economic bottleneck” and “distress” currently experienced by the Sudanese people, the Minister said.

He pledged to increase wages and pensions, and to widen social safety net to support the poor through the provision of basic goods and the reduction of government expenditure, Sudan Tribune reported today.

The Minister urged the national and state Parliaments to increase productivity, and transform Sudan “from a consuming nation to a producing country”.

The 2016 budget aims to reduce inflation and imports, direct more resources to agricultural production, and boost non-oil revenues.

While the official rate of the Sudanese Pound against the US Dollar stands fixed at approximately SDG6.0771, the black market rate recently witnessed a new low of SDG11.5. This means that the prices of basic goods imported from abroad will rise again.

In late September 2013, the government cut the main subsidies on fuel. During nationwide protests, several hundreds of demonstrators were killed and wounded.

(Source: Sudan Tribune)