By Sabri Dibaco
The Minister of Finance and Planning, Kuol Daniel Ayulo, has tabled a proposed SSP 11.34 trillion national budget for 2026/27 before Parliament.
The government has proposed South Sudanese Pounds (SSP) 2.16 trillion for debt servicing and loan repayments, including interest on domestic and international obligations.
Ayulo presented the budget before the Transitional National Legislature on Tuesday under the theme “Building Resilience and Economic Prosperity for Sustainable Peace.”
“Oil revenue is estimated at SSP 9.01 trillion, representing approximately 79.5 percent of total revenue. Non-oil revenue is projected at SSP 2.32 trillion, representing approximately 20.5 percent of total revenue,” he said.
Kuol said the 2026-2027 budget came at a time when the country is grappling with economic meltdown while also preparing for upcoming December elections.
“The government shall continue implementing measures aimed at broadening the domestic tax base, including digitalisation of tax collection, strengthening revenue administration, and reducing dependence on oil revenue,” he said.
Following the presentation, Speaker Joseph Ngere Paciko referred the proposed budget to standing specialised committees of both parliamentary houses.
Paciko directed the committees to scrutinise spending plans for ministries, departments, and agencies under their respective jurisdictions.
The committees must submit their findings to relevant parliamentary clusters within one week for further consideration and review.
The parliamentary clusters will then forward their reports to the Economic Cluster within two weeks, according to the legislative timetable.
The Economic Cluster will have another 21 days to prepare and present its second-reading report to the legislature.
The proposed budget remains subject to parliamentary scrutiny, debate, and approval before becoming the official national spending plan.
Under the proposal, oil revenues are projected at SSP 9.01 trillion, representing approximately 79.5 percent of total projected revenue.
Non-oil revenues are expected to contribute SSP 2.32 trillion, accounting for roughly 20.5 percent of projected government income.
The revenue projections underline South Sudan’s continued dependence on oil despite government efforts to broaden domestic revenue collection.
Ayulo said the government would expand the domestic tax base through digital tax collection and stronger revenue administration.
Infrastructure is among the government’s largest priorities, receiving SSP 1.187 trillion under the proposed 2026/27 spending plan.
The government has also proposed approximately SSP 2.71 trillion in capital expenditure, covering infrastructure and other capital obligations.
Education has been allocated SSP 513.1 billion, while the health sector is proposed to receive SSP 371.5 billion.
Public administration would receive SSP 927.4 billion, while security has been allocated SSP 710.89 billion.
The proposed budget also sets aside SSP 183.99 billion for pre-election activities and the December general elections.
South Sudan is scheduled to hold its general elections on December 22, 2026, according to the proposed spending plan.
The government has proposed SSP 933.42 billion for transfers and grants to states, administrative areas, and counties.
The proposal also includes SSP 1.18 trillion in payments to Sudan under existing oil-related agreements between both countries.
Oil-producing states are allocated SSP 156.65 billion, representing their two-percent share under the revenue-sharing arrangements.
Oil-producing communities are expected to receive SSP 234.97 billion, representing the three-per cent share of oil revenues.
Another SSP 234.97 billion has been allocated to the Ministry of Petroleum under the proposed budget.
The government has additionally proposed SSP 500 billion to recapitalise the Bank of South Sudan and strengthen its financial position.
Ayulo urged lawmakers to consider and approve the draft budget, finance bill, and appropriation bill for 2026/27.
The proposed spending plan will now undergo parliamentary scrutiny before lawmakers decide whether to approve the SSP 11.34 trillion budget.