The Government of South Sudan has tabled a national budget totaling SSP 7 trillion for the 2025/26 fiscal year, outlining a stabilisation-focused spending plan aimed at restoring economic order after a turbulent year marked by oil disruptions, inflation, and cash shortages.
Presenting the budget before the Transitional National Legislative Assembly on Tuesday, Minister of Finance and Planning Dr. Bak Barnaba Chol described the framework as a stabilisation and recovery budget, prioritising fiscal discipline and economic survival over expansion.
The proposed budget sets total revenue at SSP 7 trillion against planned expenditure of SSP 8.58 trillion, resulting in a fiscal deficit of SSP 1.58 trillion.
The ministry says the deficit will be financed entirely through domestic resources, with oil revenues expected to contribute SSP 5.22 trillion, while non-oil sources account for SSP 1.78 trillion.
Wages and salaries remain a central priority, with SSP 1.90 trillion allocated to public servants, amid widespread salary arrears and ongoing liquidity challenges.
Debt servicing has been allocated SSP 842 billion, while infrastructure development receives SSP 1.17 trillion. An additional SSP 1.29 trillion is earmarked for capital projects across key sectors.
Dr. Bak told lawmakers that sectoral allocations prioritize infrastructure, security, rule of law, education, and economic functions, while noting that health and humanitarian services will continue to benefit significantly from off-budget support provided by development partners.
The budget follows a difficult fiscal year in which oil production dropped by nearly 70 percent, triggering revenue losses and worsening inflation.
South Sudan’s nominal GDP for the fiscal year is projected at SSP 20.6 trillion, equivalent to approximately USD 4.5 billion.
Despite ongoing challenges, the government projects a recovery in the oil sector, with output expected to grow by 37.8 percent, driven by the resumption of production by Dar Petroleum Operating Company (DPOC) at an estimated 95,000 barrels per day.
The non-oil sector is projected to grow by 5.5 percent, supported by improved trade activity and gradual economic recovery.
Inflation remains elevated at an estimated 15 percent, reflecting continued exchange-rate pressures and supply-side constraints.
To strengthen domestic revenue mobilisation, the government has pledged to halt revenue leakages, end illegal tax exemptions, and crack down on smuggling to protect public funds.
Looking ahead, authorities confirmed plans to introduce Value Added Tax (VAT) in the 2026/27 fiscal year, with exemptions on basic food items, health services, and education to cushion vulnerable households.
The budget was tabled months behind schedule, despite receiving approval from the Council of Ministers in November 2025, underscoring the severity of cash shortages and administrative bottlenecks facing the government.
According to government, the 2025/26 budget is designed to restore confidence, enforce fiscal discipline, and lay the groundwork for gradual economic recovery in a fragile and highly constrained environment.
