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Sunday, 25 February 2018

Will the Private Sector Overcome 2018 Budget Challenges?

Economic and financial challenges face 2018 budget due to the local and international changes, economists

attributed  the crisis to rate exchange instability and oil prices drop, the government has adopted an alternative policies to overcome challenges, like increasing production and productivity, taxes and non oil resources to increase the public revenue.
The budget has sent a message to the private sector through availing opportunities to private business to shoulder responsibilities to invest in development projects and to contribute to oil and minerals  production, according to the international financial institutes that Sudan has achieved good progress, this idea focused on the total indications, while the Minister of the International Cooperation Idris Suleiman has described the 2018 budget as a bridge to safe Sudan economy if the policies application conducted properly, the Minister pointed to the main characteristics of the 2018 budget which focused on peace and stability, but said that Sudan has passed the war stage to development “war has affected Darfur, when the Arab League delegation visited the region in 2005, they estimated the damage to US$ 8 billion” as an indication to the negative impact of war on the budget, Idris added that the conducive atmosphere contributed to good development and sustainable peace.
The Minister has criticized those who exercise rate exchange trade and accused them of harming the national economy, the 2018 budget doesn’t impose new taxes, but it expanded the area of taxes by enrolling 20,000 new taxes files in Khartoum state saying the number of unregistered is “huge” he also accused “mediators” who smuggle from paying taxes of paralyzing the economic process.
The instability of rate exchange contributed to prices uprising, in the same context  the new policy is to reduce money volume to 18%, the market is not liberated to tall, stated the minister who attributed the monopoly policies to the lack full liberty,
“10 traders are monopolizing dollar and the volume of US$ 10 million is circulating among them” revealed Idris, also he disclosed that none of the 10 traders has taxes commitment”.
But he hailed their role in providing hard currency during the era of US economic sanctions” to run Sudan economy according to the law and regulations is required following the lifting of sanctions added the Minister.
The Minister of International Cooperation agree with the policy of liberating prices pointed out that funding of commodities is not good “the government used to fund 43 flour mills while the actual number of operating mills is only 4” which means that US$ 2 million is received by the 40 stopped flour mills, this means that if the whole mills operated, they would produce 7 tons, while the demand is only one and half ton, this can fund the budget with nearly US$ 1 billion and export to neighboring countries.
As regard to sugar the Minister informed that only 4 traders monopoly the whole amount of sugar, the government is regulating sugar trade now through new procedures and to provide raw sugar to be refined, the cement trade also affected by the policy of monopoly “the cost of the ton of cement is 2600 SDGs, but the traders sell the ton for 3500- 4000 SDGs, the factories produce 9 tons, the need is only 4 tons, it contribute to public fund by exporting the surplus, to overcome these challenges, the government adopted decisive procedures to fight against the chaos of prices exercised by traders Suliman told media while he was speaking in press conference that 1018 budget has no relation with increasing of commodity prices and hard currency rate exchange, the Minister expected sum of US$ 3 billion to encourage investment and US$ 2 billion for development.