The budget is like a mirror assumes to reflect the economic activities in the country and to determine the future of all economic process, it concerns with revenue and expenditure, how to generate revenue and how to spend it is a challenge, the objective of budgets is to address the economic challenges, to create good trade exchange through exportation to generate hard currency and to set an attractive investment policies to encourage foreign business, also it targets inflation, GDP rate, minimum wages, unemployment.
The Ministry of Finance and the Central Bank of Sudan, are responsible for setting the financial and monetary policies to provide final solutions to the current economic problems, the livelihood and uprising of prices, the 2019 budget has diagnosed the disease, it examined the situation perfectly, but it didn’t prescribed the effective medicine, the question that imposed itself is “How” do the financial institutes translate the figures into facts and theory into practical, what are the practical measures?.
To answer these questions we have to put in account the basic statistics in 2017, we know that Sudan population is 40 millions, so the budget aims at offering good life, by distributing the GDP which is totaled to US$ 117 billion equally among citizens, and to write of the debt that reached to US$ 47 billion, the Ministry of Finance should have to bridge the gap between export and import, the gap is so big, the volume of the export is US$ 3 billion while the volume of import totaled to US$ 8 billion, the deficit is US$ 5 billion, the budget didn’t explain how to make balance.
The best way to reform the economic situation is by the following three pillars, firstly, the new monetary policies must empower the national currency via attractive investment policies to encourage remittances, and there is 5 million Sudanese overseas, their financial wealth estimation is US$ 11 billion, secondly the expected deposits from the sisterly countries and thirdly to fight against corruption, every year the auditor discloses billions of SDGs are abused by spoilers in different institutes, billions of SDGs supposed to fund education, health and development projects were disappeared.
Good governance, financial transparency and fair administrative system will give an additional value to the 2019 budget and facilitate its mission to create a conducive economic atmosphere to address the future and to overcome challenges.
Latest posts by Mohamed Abdalla (see all)
- Economic Vision: Sudan Trade Balance Deficit - July 16, 2019
- Economic Vision: The International Dimension of Sudan Economy Issues - July 15, 2019
- Economic Vision: BRI is the China’s Biggest Global Economic Project - July 14, 2019