Taxes to Contribute 60% to 2013 Public Expenditure

By: Ahmed Alhaj (Site Admin)

KHARTOUM, (Sudanow)—The taxation proceeds will contribute 60% to financing the 2013 budgetary public expenditure, while the remaining 40% will be contributed by proceeds of the other items, including sales of commodities, services, petroleum and grants.  

The 2013 budget proposals the National Assembly has commenced debating since last Wednesday estimated that the taxes will bring in 15.1 billion Sudanese pounds (SDG) to make up 60% of the public expenditure. Meanwhile, the non-taxation proceeds are estimated at SDG10.1 billion to be injected into the public expenditure over the upcoming 12 months.


The budget document indicates that the forthcoming budget is higher than the previous one by 30% as a result of taxation increases on commodities, se4rvices, trade, international transactions, local crude sales and other miscellaneous proceeds.

According to the budgetary proposals, the taxation funds will by 20% compared to 2012 as the taxes on commodities and services will increase by 17%, trade and international transaction by 31% and other taxes by 3181%. Other non-taxation proceeds will also increase by 138% for petroleum sales and 14% for administrative fees, while the grants will increase by 7%.

It is estimated that the expenses will reach SDG21.6 billion, i.e., 41% of the total expenditure, higher by 13% than 2012; of those funds, SDG11 billion will go for wages, salaries and insurance and pension privileges (previously known as the First Chapter) and SDG2.6 Billion for expenses related to purchases on commodities and services (running) for the institutions of the State.

Next year’s budgetary proposals aim at achieving an economic growth rate of 3.6%, bringing down the inflation to 22%, stabilizing the rate of exchange of the national currency against the US dollar and maintaining lending from the banking system within 0.8% of the Gross Domestic Product, which is estimated to reach

SDG294.6 billion.

The budgetary proposals estimated that the agricultural sector will contribute 34.8%, the industrial sector 18.5% and the services 46.7% (0.7% higher) to the Gross Domestic Product.

The public revenues are estimated to constitute 8.6% of the GDP and the expenditure at 11.9% and the net internal financing will be 3.1% and the external one 0.3%. 

The exports during the coming year are expected to reach $4.5 billion, including $4.1 billion non-petroleum and $1.363 million petroleum of exports while the imports are expected to reach $7.1 billion.

The Government approved during the second quarter of fiscal 2012 a financial austerity programme in the wake of the secession of the South and shifting the petroleum proceeds to the newborn state. It said the programme would last three years and, accordingly, the Government cut back several institutions and ministries in addition to government expenditure for several corporations of the State, with emphasis on the development appropriations.


The Head of the National Congress Party (NCP) Economic Sector and former Governor of the Bank of Sudan, Dr. Sabir Mohamed al-Hassan, said: What is important is commitment and serious implementation by the Government of the recent package of reforms. This will make it useful and of a positive impact on the Sudanese economy in the near and distant future and any failure shortfall and partition in its implementation will be of no use and will not solve the country’s economic problems. The imp0lementation of the budget requires patience, Dr. Hassan advised.

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Sudanow is the longest serving English speaking magazine in the Sudan. It is chartarized by its high quality professional journalism, focusing on political, social, economic, cultural and sport developments in the Sudan. Sudanow provides in depth analysis of these developments by academia, highly ...


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