Austerity measures decreed by the Government of South Sudan, following the country’s decision to halt oil production, are going to affect negatively the budget for Lakes State.
Angelo Makuac Chawuop is the Director General for the State Ministry of Finance, Trade and Industry. He told journalists that the fiscal budget will be limited by austerity measures.He explained that state governments were advised to prepare their budgets within the limited revenue resources they are able to collect.
The Director General added that the State Ministry of Finance will have to be careful and consider its priorities in order to allocate funds.
Mr Makuac said the National Government from May takes over collection and management of excise Taxes, Seal Taxes and Personal Income Taxes.
He added that the collected revenue will be shared between the National and State Governments.
Mr Makuac said state Governments were told not to borrow money from abroad to finance their budgets except if the money is to be used in health, education and infrastructural development.
Lakes State’s budget proposals are expected to be sent to the Council of Ministers by May 15 and tabled in the State Assembly on June 1.
The 2012-2013 budget should be approved by June 30.