Republic of South Sudan

Ministry of Finance and Planning

Q 4 2016/17 Fiscal Report
December, 2017

[1]

 Table of Contents
EXECUTIVE SUMMARY ............................................................................................................. 3
FISCAL SUMMARY .................................................................................................................... 4
REVENUE SUMMARY................................................................................................................ 6
EXPENDITURE OVERVIEW......................................................................................................... 9
DONOR OVERVIEW ................................................................................................................ 11
FINANCING OVERVIEW........................................................................................................... 13
DEBT OVERVIEW .................................................................................................................... 14

[2]

 EXECUTIVE SUMMARY












The aggregate revenue was SSP 13,905 million in the fourth quarter, with oil contributing
SSP 5,089 million, while non-oil revenues amount to SSP 8,816 million. This is equivalent to
85% of the FY 2016/2017 annual budget in Q4 alone. Over the entire year, 231% of budget
was raised.
Gross oil revenue was SSP 30,308 million in Q4, and overall performance in dollar terms was
above forecast due to the higher-than-expected price. However, little reached the budget
due to the need to refinance, as well as the pressures of Nilepet and Addax – just SSP 4,039
million before new oil advance borrowings.
Net oil revenue was equivalent to 70% of the annual budget. This performance was largely
due to continued weakening of the pound against the US dollar. Nilepet and Addax received
substantial payment for oil subsidies amounting to SSP 7,650 million or 1275% of their total
annual budget over the twelve months to June 2017.
Non-oil revenue raised more than estimated in the budget owing to improvement in
fees/charges on the Financial Act (174% of annual budget). In dollar terms, non-oil
performance rose in sharply in Q4 relative to the preceding seven quarter trend, primarily
due to one-off windfalls associated with resource industries.
Expenditure from government sources was 96% of budget, totalling SSP 32,216 million.
However, while chapter performance in salaries was high due to allowances over
expenditures, primarily in the salaries were left with at least three months in arrears at the
end of the year, due to competing pressures including central ministry goods and services
and poor financing. Capital, transfers and peace expenditures were well below budget.
Net financing was negative SSP 3,586 million, against poor Treasury Bill performance relative
to budget and poor oil advance inflows relative to expectations in the budget. Donor
projects underperformed, although reporting challenges meant there was no definitive
picture at the end of the year.

[3]

 Q4 2016/17 FINAL

FISCAL SUMMARY
1: Fiscal summary

Gross Oil Revenue
Nilepet and Addax
Other deductions
Revenues to Sudan (TFA and
PTT)
Transfers to producing
communities and states
Oil production costs
Net oil revenue
Non-Oil Revenue to GRSS
central gov't
Total GRSS revenue
Donor Grants
GRSS Expenditures
General Fund
Wages and Salaries
Use of Goods and Services
Capital Expenditure
Other Expenditure
Transfers and Grants
General Fund Total
ARCISS implementation
payments
Contingency Fund
Interest and bank charges
GRSS expenditure total
On-budget donor activity
Grant
Loan
Total grants and loans (on
budget)
Total expenditure
Overall balance
Unfunded budget/ Actual
reporting gap
Net Financing (excl. deposit
changes and Sudan)
BOSS
BOSS Recap.

Budget, YTD
Q4, SSP
SSP m
Execution, m
SSP m

% of
budget
executed
YTD

46,833
1,512
0
37,623

81,144
19,274
47
42,587

30,308
7,650
0
17,553

461

35

0
7,238
9,256

% of annual
budget
executed,
latest
quarter
173%
65%
1275%
506%
113%

47%

16

8%

3%

124
19,076
16,074

0
5,089
8,816

264%
174%

70%
95%

16,494
2,041
'--

35,150
510
'---

13,905
52
'-----

213%
25%
'--------------

84%
3%
'---------

14,358
5,106
1,588
38
6,311
27,401
4,500

13,539
12,523
1,889
384
3,623
31,958
100

4,431
4,270
1,012
160
1,139
11,013
21

94%
245%
119%
1010%
57%
117%
2%

31%
84%
64%
420%
18%
40%
0%

1,333
155
33,389
'2,041
2,644
4,685

54
74
32,186
'-510
144
654

0
16
11,049
'--52
30
82

4%
48%
96%
'---25%
5%
14%

0%
10%
33%
'----3%
1%
2%

38,074
-19,539

32,840
2,820

11,132
2,826

-15,770

-765

2,588

3,769

-3,586

-238

-95%

-6%

0
0

2,792
0

0
0

[4]

 Q4 2016/17 FINAL

FISCAL SUMMARY
1: Fiscal summary

Oil Advance Sales
Treasury Bill Interest
Treasury Bills
World Bank & China Loans

Budget, YTD
Q4, SSP
SSP m
Execution, m
SSP m

-7,875
0
9,000
2,644

-7,374
0
852
144

-370
0
103
30

% of
budget
executed
YTD

% of annual
budget
executed,
latest
quarter
94%
5%
9%
5%

1%
1%

Revenue








Total net revenue in the fourth quarter was SSP 13,905 million. This was from net oil
revenues which totalled SSP 5,089 million, with SSP 8,816 million from non-oil revenues.
This is equivalent to 84% of the annual budget. Part of the over-performance is due to
inflation, and the fall in the value of the South Sudanese pound in relation to US dollar
receipts. Total revenues in dollar terms for the year were USD 172 million non-oil and USD
241 million net oil.
Net oil revenues were equivalent to 70 % of the annual budget in Q4 alone. This overperformance was primarily due to exchange rate factor and oil prices, which raised the
revenue accrued to above expected gross revenues.
In addition, transfers were made to oil-producing states and communities at only SSP 16
million in the fourth quarter, which is only 8% of the allocated amount.
Payments to Nilepet & Addax in Q4 alone were over 506% of the annual budget to date.
Gross oil revenue was SSP 30,308 million in Q4, equivalent to 65% of the annual budget. This
was primarily due to the exchange rate exceeding the budgeted rate of 70 SSP/USD.
Non-oil revenues total 95% of the annual budget in Q4 alone, thanks to improvement in the
collection, one-off oil-related windfalls and arrears collections, and new Financial Act rates
applied.

Government Spending







Total government spending was SSP 11,049 million in the fourth quarter, which was
equivalent to 33% of the annual budget. Although overall government expenditure was
close to budget, expenditure levels across the main chapters and sectors deviated from
budget considerably.
Total expenditure on salaries in Q4 was SSP 4,431 million, above budget and equivalent to
31% of the annual budget.
Transfers were significantly below budget, equivalent to only 18% of the annual budget; this
is mainly because of unpaid arrears.
Expenditure on operating was over budget, with 84% of the annual budgets spent in Q4
alone. All agencies received two minimum operating allocations, typically SSP 1,000,000 and
SSP 500,000, to ensure all agencies could function throughout the year.
Besides, several reforms were implemented by the Ministry of Finance and Planning,
targeting expenditure control. The effect of these measures can be seen in the large
[5]

 

reduction in spending on capital and operating in later quarters, in particular by those
agencies which overspent by the most in the first three quarters.
In the fourth quarter, spending on peace implementation was recorded at SSP 21 million and
SSP 16 million for contingency.

Fiscal Deficit and Financing






The overall fiscal balance was SSP 2,820 million in surplus for the fourth quarter. Exchange
rate changes not reflected, and lack of financing, were key contributors.
Thanks to fiscal reforms, according to BoSS figures, the government refrained from BoSS
borrowing in the last quarter of the year.
Net financing for the fourth quarter of the year was SSP -238 million.
The Government repayment on oil advances was recorded at SSP -370 million in Q4. This
means that on a net basis, there was lower new borrowing than repayments on oil advances.
For the whole fiscal year, the pattern was similar.

REVENUE SUMMARY

Oil Revenue
Sudan
Nilepet and other ref. prods.
Other*
Transfers to producing communities and
states
Oil production costs
Net oil revenue
Trafigura repayments
GRSS (to bank)
Direct expenses
Civil Aviation (Direct expense)
Commercial Bank Commission (Direct
expense)
Customs (Direct expense)
Government shares - Co-op (Asset
purchase)
Non-Oil Revenue
Personal Income (Private)
Advance Income Tax
Personal Income (Public)
Business Profits Tax

Budget Executed, Executed, Budget
Budget
(SSP m) year to
Most
execution execution,
date (SSP recent
YTD, %
most
m)
quarter
recent
(SSP m)
quarter,
%

37,623
1,512
0
461

42,587
19,274
47
35

17,553
7,650
0
16

0
7,238
7,875
-637

124
19,076
15,037
4,039

0
5,089
4,081
1,008

0
0

323
64

33
17

0
0

362
282

0
72

2,483
0
0
1,295

3,434
281
655
807

1,869
78
183
310

[6]

113%
1275%

47%
506%

8%

3%

264%
191%
-634%

70%
52%
-158%

138%

75%

62%

24%

 REVENUE SUMMARY

Sales
Customs Duties/Fees
Excise
Excise Tax
Unidentified remittance
Other non-Tax revenue
Miscellaneous/BoSS
Total non-oil revenue
Donor Grants
*not identified

Budget Executed, Executed, Budget
Budget
(SSP m) year to
Most
execution execution,
date (SSP recent
YTD, %
most
m)
quarter
recent
(SSP m)
quarter,
%
2,630
1,170
0
1,034
0
644
0
9,256
2,041

1,414
953
465
468
6,555
1,041
0
16,074
510

379
228
147
162
5,091
369
0
8,816
52

54%
81%

14%
19%

45%

16%

162%

57%

174%
25%

95%
3%

Oil Revenues







The Government made direct payment of SSP 17,553 million for in-kind payments, TFA,
Tariff and for transit payments combined to Sudan.
In addition, no transfers to oil producing states and communities were made in the fourth
quarter of the fiscal year, and the total for the whole year was less than 10% of that
budgeted.
Nile Pet and Addax took almost SSP 7,650 million in oil shipments and other refined product
subsidies in Q4 alone. The annual expenditure on this item was 1275% of the budget.
Net oil revenues were SSP 5,089 million in the fourth quarter of the fiscal year. The annual
execution was higher than envisaged, at 264% of budget.
The requirement to repay previous oil advances to Trafigura required SSP 4,081 million. This
is also reflected in the financing.
A dollar terms summary of oil flows is found below. It shows substantial over performance
on the gross and net revenue from oil, due to the higher-than-budget-forecast price. After
Trafigura repayments and other deductions including Sudan and Nilepet refined oil
deductions and USD grants to Nilepet, South Sudan took just 24% of the gross revenue, but
could not refinance from oil advances. After net oil advances, GRSS received just 14% of
Gross Oil revenues.

Non-oil revenues





Total identified non-oil revenue collections were SSP 9,519 million, which was SSP 102% of
the total estimated non-oil revenue.
An additional SSP 5,091 million in non-oil revenues was accounted for by Treasury from
unidentified remittances in Q4 alone, totalling SSP 6,555 million for the year.
All revenue categories came in meaningfully below budget, except other revenues and PIT.
Of the major tax lines, sales tax underperformed the worst compared to budget.
Non-oil revenues increased in the fourth quarter of the fiscal year, due to implementation of
measures in the 2016/17 Financial and Appropriation Acts and the continuing depreciation
of the SSP. It should be noted that budget forecasts assumed these measures would be in
[7]

 

place from July. This could explain why those revenue categories with new measures may be
over-performing compared to budget forecasts, for example sales tax.
Net oil revenues are at risk in real value, due to continued pressures from repaying advances
and payments to Sudan.

OIL, USD
2: Oil dollar overview

Oil Revenue
Sudan (USD)
Nilepet in - kind (USD)
Nilepet Ref/Prod (USD)
Other Ref/Prod (USD)
GRSS central revenues from oil
GRSS (to bank) (USD)
Trafigura repayments (USD)
Other (USD)
Oil related borrowing
Trafigura advances (USD)
See discussion above.

Budget
Executed, Executed, Budget
Budget
(indicative, year to
Most
execution execution,
USD m)
date
recent
YTD, %
most
(USD m)
quarter
recent
(USD m)
quarter, %
662
1,009
299
152%
45%
537
480
156
89%
29%
22
90
26
418%
121%
0
31
12
0
84
28
104
241
45
232%
43%
-9
56
9
-615%
-98%
113
184
36
164%
32%
0
1
0
0

[8]

82

32

 EXPENDITURE OVERVIEW
Budget, YTD
Latest
% of
SSP m expenditure,
quarter budget
SSP m
expenditure,
spent
SSP m
YTD
A: Summary of expenditure
by sector
Accountability
Economic Functions
Education
Health
Infrastructure
Nat. Res. & Rural Devt
Public Administration
Rule of Law
Security
Social & Humanitarian
Affairs
Grand Total
B: summary of expenditure
by chapter and fund
General Fund
Wages and Salaries
Use of Goods and Services
Capital Expenditure
Interest, grants, loans &
donat.
Transfers and Grants
ARCISS implementation
payments
Wages and Salaries
Use of Goods and Services
Contingency Fund
Use of Goods and Services
Interest and debt payment
Use of Goods and Services
Interest, grants, loans &
donat.
Grand Total

% of
annual
budget
spent,
latest
quarter

3,427
502
1,406
668
634
747
11,128

4,627
398
960
410
386
599
9,299

1,692
89
365
155
214
191
3,646

135%
79%
68%
61%
61%
80%
84%

49%
18%
26%
23%
34%
26%
33%

3,760
10,946
172

3,661
11,651
194

1,197
3,414
87

97%
106%
113%

32%
31%
51%

33,389
'---

32,186
----

11,049
'----

96%
'-----

33%
'------

14,358
5,106
1,588
38

13,539
12,523
1,889
384

4,431
4,270
1,012
160

94%
245%
119%
1010%

31%
84%
64%
420%

6,311

3,623

1,139

57%

18%

0
4,500

27
73

0
21

2%

0%

1,333

54

0

4%

0%

0
155

71
4

14
2

2%

1%

33,389

32,186

11,049

96%

33%

[9]

 EXPENDITURE










Total government spending in the fourth quarter was SSP was SSP 11,049 million, which
was equal to 33% of the annual budget.
It should be noted that several reforms were implemented from August 2016, to better
control budget execution. These include:
o Unpresented cheques being recalled and cancelled;
o Introduction of a cash management committee;
o Cheques being signed only when funds are available to prevent the accumulation of
new un presented cheques; and
o Ministries are being paid equitable operating costs to cater for their expenses on
regular basis.
These reforms have contributed to better budget execution, most notably by preventing
government expenditure taking place when resources are not available, which has
previously led to accumulation of un presented cheques and arrears.
Total salary execution is SSP 13,539m, just 94% of the annual budget, due to lack of available
resources against competing Government priorities.
In comparison, transfers are executed at only 57% of the allocated budget. This is due to a
combination of arrears, crowding out from goods and services expenditures in a few central
government agencies, delays in health and education extended to all government
employees, eligibility considerations, and late introduction of the revised salary scales at the
advent of the budget.
Capital expenditure was above-budget in the fourth quarter. However, this overall
aggregate masks over-expenditure in some agencies and under expenditure in others.
Expenditure on operating was SSP 12,523 million for the year, which is 245% of budget.

SECTORAL EXPENDITURE




The dispersal of expenditure between agencies and sectors was very unequal in the year to
date, and this trend continued in all four quarters.
Security, public administration and Accountability dominated the distribution at the expense
of services delivery sectors. See annex.
Ministry of Education and Health sectors spent 68% and 61% of their annual budgets
respectively.

[10]

 DONOR OVERVIEW
v: Donor table

Donor Revenue
Grant
Agriculture Development and Food
Security Project
Emergency Food Crisis Response
(World Bank)
Gender Equality and Economic
Empowerment (ADB)
Good Governance & Capacity
Building in NRM (ADB)
Institutional Support to PFM and Aid
Coordination (AfDB)
Juba Power Distribution (AfDB)
Procurement Capacity Development
(World Bank)
Resilience, Water & Sanitation (ADB)
South Sudan Rural Roads Project
(SSRRP) (World Bank)
Strengthening the Capacity of Audit
Chamber (World Bank)
TA for the Transport Sector (AfDB)
Loans
East Africa Regional Transport Project
(World Bank)
Energy Sector Technical Assistance
(World Bank)
Juba Airport (China EXIM)
Juba Women's and Children's
Hospital (Kuwait Fund)
Local Governance and Service
Delivery (World Bank)
Safety Net and Skills Development
(World Bank)
Statistical Capacity Building (World
Bank)
Total grants and loans (on budget)

Budget Executed, Executed, Budget
Budget
(SSP
year to
Most
execution execution,
m)
date (SSP recent
YTD, %
most
m)
quarter
recent
(SSP m)
quarter to
date, %
2,041
0

510
6

52
0

25%

3%

189

6

0

3%

0%

69

0

0

0%

0%

49

0

0

0%

0%

175

0

0

0%

0%

1,021
29

0
34

0
0

0%
117%

0%
0%

92
0

0
464

0
52

0%

0%

3

0

0

0%

0%

414
2,644
280

0
144
15

0
30
0

0%
5%
5%

0%
1%
0%

88

2

0

2%

0%

0
0

0
0

0
0

1,813

39

0

2%

0%

183

27

0

15%

0%

280

61

30

22%

11%

4,685

654

82

14%

2%

[11]

 DONOR FUNDING




South Sudan receives some development and humanitarian support in the form of loans and
grants. Some of this funding is implemented with the involvement of the government and
may use government financial systems. These projects are therefore appropriated in the
budget. Donors are requested to report their disbursements on a quarterly basis and these
are compared with the budgeted amount in donor Table above. However, lack of reporting
from several donors makes the aggregates incomplete.
On this quarter, donors reported disbursing a total of SSP 82 million, of which SSP 52 million
was grants and SSP 30 million was loans. Some projects continue to underperform, due to
the security situation and lack of reporting.

[12]

 FINANCING OVERVIEW
w: Financing summary table

Net Financing (excl. deposit
changes and Sudan)
BOSS
BOSS Recap.
Oil Advance Sales
Treasury Bills
World Bank & China Loans
New Borrowing
BOSS
BOSS Recap.
Oil Advance Sales
Treasury Bills
World Bank & China Loans
Repayments
BOSS
BOSS Recap.
Oil Advance Sales
Treasury Bills
World Bank & China Loans






Budget
(SSP m)

Executed,
year to
date (SSP
m)

3,769
0
0
-7,875
9,000
2,644
11,644
0
0
0
9,000
2,644
7,875
0
0
7,875
0
0

-3,586
2,792
0
-7,374
852
144
16,371
2,890
0
7,663
5,674
144
19,957
98
0
15,037
4,822
0

Executed, Budget
Budget
Most
execution execution,
recent
YTD, %
most
quarter
recent
(SSP m)
quarter to
date, %
-238
0
0
-370
103
30
5,641
0
0
3,711
1,900
30
5,878
0
0
4,081
1,797
0

-95%

-6%

94%
9%
5%
141%

5%
1%
1%
48%

63%
5%
253%

21%
1%
75%

191%

52%

Total financing was budgeted at SSP 3,769 million more payments in, than payments out.
Instead, according to BoSS and AidCo records, outflows exceeded inflows by SSP 3,586
million on a net basis.
Treasury bills did not meet their target of SSP 9,000 million on a gross basis; less than SSP 1
billion was raised.
Oil advances fell by SSP 7,374 million close to the estimate, and new advances were not
available to the extent required to replace existing ones.
The debt to Sudan was not recorded over the year. It is estimated that positive net
repayments are made, since the recorded USD value of payments was around USD 20
million greater than new obligations.

[13]

 DEBT OVERVIEW
Total Debt, end of month
BOSS
BOSS Recap.
Oil Advance Sales
Treasury Bill Interest
Treasury Bills
World Bank & China
Loans
Gains/losses on Stock
value
Exchange rate effect on
debt stock
BOSS
BOSS Recap.
Oil Advance Sales
Sudan
Treasury Bill Interest
Treasury Bills
World Bank & China
Loans
Reconciliation table
Overall balance
Net Financing (excl.
deposit changes and
Sudan)
Decrease / (Increase) in
Cash
Other financing
Total Financing
Unreconciled






End prev. FY
(SSP m)

Change,most recent
quarter (SSP m)

35,194
14,790
1,917
11,410
0
1,759
5,318

3,132
0
0
1,541
0
103
1,489

Change,
Final
YTD (SSP
debt
m)
24,745 59,939
2,792 17,582
0
1,917
9,868 21,278
0
0
852
2,611
11,233 16,551

Change,YTD
Change, later
(SSP m)
quarter
28,331
3,370
0
0
17,242
0
0
0
11,089
YTD

0
0
1,911
0
0
0
1,459
Latest quarter

2,820
-3,586

n/a

2,826
-238

n/a
656 n/a
-3,586
-765

-238
2,588

Other financing is the estimated additional arrears to government employee pensions of
SSP656 million. The fiscal year unreconciled amount was SSP 765m, which could be due to
unreported changes in cash balances and changes not captured in the exchange rates on
either expenses or revenues.
Sudan debt is not included in the above. Estimated arrears were reduced this year in dollar
terms due to overpayment in terms of cargoes seized and cash transferred relative to the
accrual of PTT and TFA liabilities.
Large revaluation of external debt due to the falling pound accounts for the increase in the
value of debt in SSP.
[14]