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Approved Budget Tables Fiscal Year 2017/18

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Approved Budget Tables Fiscal Year 2017/18 Approved Budget Tables Fiscal Year 2017/18 Ministry of Finance and Planning Republic of South Sudan September 2017 grss-mof.org TABLE OF CONTENTS FOREWORD i NATIONAL BUDGET PLAN I. Macroeconomic Environment iii II. 2016/17 Budget Execution xi III. 2017/18 Revenue Plan xv IV. 2017/18 Expenditure Plan xvii V. Financing Plan and Debt Position xx 2017/18 Resource Envelope xxiii REVENUE AND EXPENDITURE SUMMARY TABLES 2016/17 Approved Budget 1 2016/17 Actuals 4 2017/18 Draft Budget (by Fund) 7 2017/18 Expenditure Estimates by Item (by Fund) 10 STAFFING LEVELS, SALARY SCALES AND ALLOWANCES StafFing Structure 12 Salary and allowances scales 19 TRANSFERS TO STATES AND COUNTIES RSS TransFers by Sector and Programme 23 RSS TransFers by Location and Chapter 24 RSS TransFers totals For all locations 29 DETAILED EXPENDITURE TABLES ACCOUNTABILITY SECTOR Audit Chamber 30 Finance and Planning 34 National Bureau oF Statistics 49 Anti-Corruption Commission 55 Reconstruction & Development Fund 59 Fiscal & Financial Allocation & Monitoring 63 National Revenue Authority 68 ECONOMIC SECTOR Access to InFormation Commission 71 East AFrican Community 75 Energy & Dams 79 Petroleum & Gas Commission 83 Investment Authority 87 Media Authority 91 Ministry oF InFormation, Telecomm. & Postal Services 95 Ministry oF Mining 101 Ministry oF Petroleum 105 National Communications Authority 109 South Sudan Broadcasting Commission 113 Ministry oF Trade, Investment & Industry 117 Urban Water Corporation 123 Electricity Corporation 127 National Bureau oF Standards 131 Irrigation & Water Resources 135 EDUCATION SECTOR 157 Higher Education, Science & Technology 147 General Education & Instruction 153 HEALTH SECTOR 179 Health 168 HIV/Aids Commission 186 Drug and Food Control Authority 190 INFRASTRUCTURE SECTOR 203 Transport 194 Lands, Housing and Urban Development 198 South Sudan Roads Authority 204 South Sudan Civil Aviation 208 Roads & Bridges 214 NATURAL RESOURCES AND RURAL SECTOR 226 Livestock & Fisheries Industry 219 Ministry oF Agriculture & Food Security 227 Ministry oF WildliFe Conservation and Tourism 234 Ministry oF Environment and Forestry 246 Land Commission 253 PUBLIC ADMINISTRATION SECTOR 258 Ministry oF Cabinet AFFairs 257 Parliamentary AFFairs 263 Civil Service Commission 267 Ministry oF Federal AFFairs 271 Ministry oF Foreign AFFairs 277 OFFice oF the President 285 Ministry oF Labour, Public Service & Human Resource Developm 290 National Legislative Assembly 297 Local Government Board 301 Employees Justice Chamber 305 Public Grievances Chamber 310 National Elections Commission 314 Council oF States 318 National Constitution Review Commission 322 Parliamentary Service Commission 326 Northern Corridor Implementation Authority 330 RULE OF LAW SECTOR 321 Ministry oF Justice 334 Interior Headquarters 340 Police Service 344 Prisons Service 351 Fire Brigade 360 Judiciary oF South Sudan 366 Law Review Commission 370 Bureau oF Community Security & Small Arms 374 Human Rights Commission 378 Commission For ReFugees AFFairs 382 SECURITY SECTOR 363 Ministry oF DeFence & Veteran AFFairs 386 De-Mining Authority 402 Disarmament, Demobilization & Reintegration 406 National Security Service 410 SOCIAL AND HUMANITARIAN AFFAIRS SECTOR Ministry oF Gender, Child & Social WelFare 415 Ministry oF Culture, Youth & Sports 421 Ministry oF Humanitarian AFFairs & Disaster Management 427 RelieF & Rehabilitation Commission 431 Peace Commission 437 War Disabled, Widows & Orphans Commission 441 ANNEX Draft proposed chart oF accounts For 2017/18 A1 Foreword This document provides the technical background and context for the 2017/18 Budget. The Budget is a function of macroeconomic parameters and politically determined priorities. It is a policy document which affects the lives and interests of people. Our macroeconomic and political problems require sound sustainable economic policies, which move us towards stability and economic recovery. This Plan is based on analysis from the Budget Department, Macroeconomic Department, the National Bureau of Statistics, as well as from development partners. It is of fundamental importance to demonstrate how previous fiscal year 2016/17 has performed, to inform us, as well as to help prepare future fiscal responses. Budget execution in 2016/17 has had many challenges and some successes, including the cessation of borrowing from the Bank of South Sudan from January 2017 to May 2017, and higher-than- forecast gross oil revenues. However, the pressure of uncontrolled spending in selected ministries, and runaway spending on Nilepet and refined oil products has meant that civil service salaries have been delayed for several months. Rising global oil prices did not make substantial additional resources available, given the increasing costs of the fuel subsidy. As expected in the budget process, we did not have sufficient revenues to execute all our budgeted expenditures. For the first half of the fiscal year, under pressure to pay salaries, we continued to contract loans from the Bank of South Sudan, albeit at a reduced amount relative to the end of 2015/16, and took advances from oil companies in order to guarantee payment of salaries and state transfers. Revenue raising measures in the 2016 Acts have started to bear fruit. From January, following the passage of the final budget, macroeconomic discipline improved, with no new lending from the Bank of South Sudan, but extraordinarily tight conditions for most Government staff, suppliers, and service users prevailed. The 2017/18 Budget is part of a process towards achieving macroeconomic stability, raising revenue compliance, and spending the Budget as planned. This Budget contains further significant real reductions in government expenditure, and continuing measures to reduce inflation and restore confidence in the ability of the Government to execute its budget. We must strive to do the best with what we have. To stem further deterioration and hopefully enhance service delivery, the Budget also contains more than two billion Pounds in additional allocations for vulnerable groups. The Budget must be accompanied by stringent cash management procedures, to ensure that we do not spend beyond our means, and that we prioritise available resources for paying salaries, while minimising the amount spent by selected agencies on travel and benefits. We recognise that the Nilepet reform is required to i finance much of planned expenditure. In the event that there are insufficient funds to execute all budgeted expenditures, we will prioritise our payments to ensure that salaries are paid, states receive their transfers, and that the Government services our outstanding debts. Peace is of paramount importance, but the continued decline in the spending power of the Government means that less has been set aside than last year. However, the three billion pound allocation, at close to 7% of planned expenditure, will go some way to supporting efforts to secure a return to peace and National Dialogue. Alongside this Budget, I will be taking steps to continue to implement the Government’s Fiscal Stabilisation Measures Action Plan, in conjunction with key recommendations from international partners. This includes various measures that will reduce government expenditure, increase government revenues, and improve cash management. Some of these measures are included in the Financial Bill 2017/18, which proposes to correct some of the issues which emerged in the 2016/17 Act. It is important that we, as a Government, continue the work to regain our fiscal credibility and steer our finances onto a sustainable path. I call on all of my colleagues in Government and the Assembly to join the struggle to stabilise our economy, to support the Government in ending the ruin that BoSS borrowing and the resulting runaway inflation has brought to our country, to ensure that budget resources reach the budget, and to lay the foundations for a sustainable recovery in South Sudan. Only through sustained peace and growth, will we be able to provide the services and livelihoods that our people deserve. And I hope that the Budget that I present to you here will be another step in the direction of restarting that process. Stephen Dhieu Dau Minister Ministry of Finance and Planning ii National Budget Plan Macro-Fiscal Developments The current macroeconomic environment in South Sudan continues to pose enormous difficulties. The continuing conflict has resulted in a further decline in South Sudan’s Gross National Income (GNI) this year. The IMF in March 2017 estimated that non-oil real GDP has declined by around a quarter over the period 2013/14 to 2016/17; total GDP has declined by about the same percentage 2014/15-2016/17. Year-on-year consumer price inflation was 334% to May 2017, and the pound has lost more than 97% of its value against the US dollar over the last two years. However, there are some indications (Chart 1) that inflation is beginning to abate, and we have not seen a repeat of July 2016, where price increases reached hyperinflationary levels. Chart 1: South Sudan Inflation Inflation, CPI, year-on-year, July Inflation, CPI, month-on-month, 2015 to April 2017 July 2015 to April 2017 500 90 450 80 400 70 350 60 300 50 250 200 40 150 30 100 20 50 10 0 0 15 16 16 17 15 16 15 16 16 17 16 17 15 16 16 17 15 16 15 16 16 17 16 17 - - - - - - - - - - - - -10 - - - - - - - - - - - - Jul Jul Jul Jul Jan Jan Jan Jan Sep Sep -20 Sep Sep Nov Nov Mar Mar Nov Nov May May Mar Mar May May iii Table 1: Macroeconomic trends, Q1-Q3 Table 1: Key Macroeconomic indicators, first nine months of fiscal year 2016/17 Q1 Q2 Q3 CPI Inflation 425% 423% 354% (annual, average) CPI inflation (monthly, end 26% 9% -12% of period) Parallel Exchange Rate 68 84 117 (average) Official Exchange Rate 55 74 98 (average) Average Price of Brent 46.99 51.24 52.50 Blend (USD/b) To give a recap of post-Independence economic milestones: oil production was shut down in 2012. At the end of 2013, civil war broke out, disrupting oil and agricultural production. To cope with these two crises and maintain expenditure levels, government savings and reserves were exhausted, and substantial loans were incurred.
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