Republic of South Sudan. Ministry of Finance and Economic Planning

Transcription

1 Republic of South Sudan Ministry of Finance and Economic Planning 2014/15 Second Quarter Macro-Fiscal Report February

2 Contents 2014/15 Second Quarter & Half-Year Overview... 3 Summary of Q Section 1: Key Macroeconomic Developments... 5 Section 2: Revenue & Financing... 6 Section 3: Execution... 8 Section 4: Donor Spending Developments Appendix 1: Total Spending by Sector & Agency Appendix 2: Spending on Salaries by Sector & Agency Appendix 3: Spending on Operating by Sector & Agency Appendix 4: Spending on Transfers by Sector & Agency Appendix 5: Spending on Capital by Sector & Agency Appendix 6: Spending on Other Expenditures by Sector & Agency Appendix 7: Disbursements against the externally financed projects recorded in the 2014/

3 2014/15 Second Quarter & Half-Year Overview Millions SSP Q1 Q2 Halfyeayear Half Quarterly Actual Actual actual variance Oil revenue (net) 8,899 2,225 2,088 1,086 3,174 (1,276) Non-oil revenue 2, (714) Grants (8) Total Revenue 11,711 2,928 2,355 1,503 3,858 (1,998) Salaries 4,413 1,103 1,509 1,578 3,087 (881) Operating 2, , Transfers 2, ,315 (82) Capital (59) Other (92) Agency Spending 9,532 2,383 2,744 3,109 5,853 (1,087) Arrears, Contingency, Interest 1, Total Government Spending 10,842 2,711 2,747 3,279 6,026 (605) Externally funded spending Total Spending 11,279 2,820 2,747 3,363 6,110 (471) Surplus (Shortfall) (392) (1,860) (2,252) (2,468) Net Financing (433) (108) 839 1,896 2,735 2,952 Balance Positive variances indicate more revenue than budgeted or spending within budget. Negative variances indicate less revenue than budgeted or overspending. Figure 1. Summary Q1 2014/15 revenue, spending and financing, in SSP million 3,500 3,279 3,000 2,711 2,747 2,500 2,000 2,225 2,088 1,896 1,500 1, , (108) Net Oil Revenue Non-oil Revenue Government spending Net Financing Quarterly budget Q1 actuals Q2 actuals 3

4 Summary of Q2 Total revenue was SSP 1,503 million in the second quarter, which is half the projected revenue for the quarter. With oil prices dropping steadily from USD 95 to USD 55 throughout the quarter, net oil revenues in the second quarter were just SSP 1,086 million, compared to SSP 2,225 million in the first quarter. Non-oil revenue was SSP 346 million, a 30% increase compared to the first quarter due to higher customs revenues and improved compliance. Nevertheless, based on current performance and reduced oil prices, it is likely that total revenue for this financial year will be less than half of the budgeted level. The Government of South Sudan continued to finance the revenue shortfall with borrowing from the Bank of South Sudan. New loans net of repayments totaling SSP 2,735 million were taken out in the first half. This additional borrowing has resulted in an increase in the money supply and consequent upward pressure on prices (inflation). It also continues to drive the depreciation in the black market exchange rate. Agency spending in the second quarter was SSP 3,109 million, which was SSP 726 million above the quarterly budget. The primary reason for the second quarter overspending was the payment of four months of salaries and transfers, due to the fact that September salaries were not paid during the first quarter. For the half year the salaries budget has been overspent by SSP 881 million. Approximately SSP 675 million relates to the payment of May and June salaries for the 2013/14 financial year in July, implying the salaries budget was still overspent by SSP 200 million at the end of December. If current overspending continues, salaries for the 2014/15 financial year can be expected to exceed the budget by over SSP 400 million in addition to the salary arrears payments of SSP 675 million. Agencies in the Security sector, as well as the Office of the President and the Ministry of Finance, continue to spend far more on salaries and operating costs than budgeted while other agencies spend significantly less as a result. Interest of SSP 175 million was paid in the first half. Externally funded spending was SSP 84 million for the first half of the year. This includes spending on six World Bank projects (loans and grants) coordinated with the government. 4

5 Billions SSP Section 1: Key Macroeconomic Developments Inflationary pressures built up during the quarter, and the exchange rate has continued to depreciate. Prices in South Sudan fell in October on an annual basis in line with declining food prices in Uganda. Annual inflation then rose to 20% in November, before declining to 10% in December, even though Ugandan food prices continued to decline. The spike in November inflation may have been caused by government efforts to increase compliance at the border, resulting in some temporary supply shortages. The black market exchange rate depreciated by 22% over the quarter from a rate of SSP 4.83 on September 30 th to SSP 5.88 on December 31 st. This is attributable to both the drop in oil prices, which has reduced the availability of USD, as well as the financing of the government deficit through borrowing from the BoSS, which has increased the supply of SSP. The depreciation is being dampened somewhat by lack of demand for USD as the economy remains very depressed. It is to be expected that the depreciation in the exchange rate during the second quarter will result in increasing prices during the remainder of the year, as vendors adjust prices upwards in response to the higher cost of imports as a result of the exchange rate depreciation. Figure 2: Inflation Rates, South Sudan and Uganda October 2013 to December Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q2 2013/14 Q3 2013/14 Q4 2013/14 Q1 2014/15 Q2 2014/15 Uganda (Food Index) South Sudan (All Items Index) As the amount of US dollars continues to decline, and as November and December salaries were paid at the end of December with BoSS financing, further depreciation of the exchange rate and increases in the price level are likely. How the exchange rate and inflation develop during the remainder of the year will depend on the size of the monthly deficit the government runs and how it is financed, if oil prices do not recover. Figure 3: Parallel and Official Exchange Rates and Money Supply (End of Period) October 2013 to December Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Q2 2013/14 Q3 2013/14 Q4 2013/14 Q1 2014/15 Q2 2014/15 Official exchange rate (SSP p/$) Parallel exchange rate Monetary Base

6 Section 2: Revenue & Financing Total revenue was SSP 1,203 million in the second quarter, about half the budgeted revenue for the quarter. This was largely due to oil revenues decreasing sharply following the drop in oil prices, and non-oil revenues still being far below projected levels. Oil accounted for 72% of total revenue during the quarter, even though it declined from the first quarter. Based on current performance, it is likely that total revenue for this financial year will be less than half of the budgeted level. Table 1: Detailed revenues (SSP million) Annual Quarterly Q1 actuals Q2 actuals actual Q2 quarter difference difference Gross Oil Revenue 12,780 3,195 2,728 1,828 4,556 (1,367) (1,834) Tariff, transit and TFA payments to Sudan 3, ,302 (142) (405) 2%/3% for oil producing States/Communities (86) (154) Net oil revenue 8,899 2,225 2,088 1,086 3,174 (1,139) (1,276) PIT Sales Tax/VAT (160) (333) Excise (43) (94) Business Profit Tax (36) (81) Customs Other Revenue (fees, licenses) (131) (278) Non-oil revenue 2, (318) (714) Grants (8) Total Revenue & Grants 11,711 2,928 2,355 1,503 3,858 ( 1,425) (1,998) Net oil revenues in the second quarter amount to SSP 1,086 million, as compared to SSP 2,088 million in the first quarter. Oil revenues were affected by a sharp drop in oil prices in the second quarter, from USD 95 per barrel Brent crude in October to USD 55 at the end of December. Production levels remained stable at 165,000 barrels per day from Upper Nile, while production in Unity State remains shutdown. As a result of the price drop, only 71% of the projected revenue from oil has been realized in the first half of this financial year. Non-oil revenues were SSP 346 m in the second quarter as compared to SSP 267m in the first quarter. Improvements were made in non-oil revenue collection, with customs revenues from Nimule increasing. Personal income tax, sales tax and customs were the main sources of tax revenue for the second quarter. Increases in sales tax made the greatest contribution to increased revenue collections, as growing by 18%, while excise duty and business profits tax increased by 20% and 40% respectively. Efforts at the border yielded a 14% increase in customs revenue, while private PIT increased in December as compliance with withholding requirements increased. Despite these improvements, actual revenue collections for the quarter were still less than half the budgeted level. The shortfall of revenue compared to expenditure was financed by borrowing from the Bank of South Sudan. Loans of SSP 2,400 million were taken out to pay for salaries from September to December, plus SSP 111 million of loans in November and December to pay for specific agencies operating needs. During the first half the Bank of South Sudan also applied interest of SSP 112 million on these and previous loans. There was little other borrowing in the second quarter, with only SSP 13 million borrowed from the World Bank (see Section 4). Internal borrowing continued as neither employees nor employers pension contributions were deposited into the pension account and the required 3% payments to oil producing communities were deferred. 6

7 November December January February March April May June July August September October November December January SSP Billions Table 2: Debt Position as at the 31 st of December 2014 SSP Million Oil Advance Sales World Bank & China Development Loans Domestic Banks BoSS BoSS Recapitalization Opening Balance July ,202 3,132 2,001 7,274 New Borrowing ,251-4,870 Repayments including interest ,450-2,310 Interest accrued 2014/ Net Financing (398) , ,735 Closing Balance Dec ,313 6,045 2,034 10,009 Note: Not included in the above figures are the undisbursed portion of the loan from the China EXIM bank for work on the airport, the remaining balance of Transitional Financial Assistance to Sudan due to be paid over the next year, internal borrowing from the pension account and amounts due to oil producing states and communities or arrears due for goods and services delivered in past years. Total Outstanding principal debt now stands at over SSP 10 billion, the majority of it owed to the Bank of South Sudan. Most oil company advances have now been repaid and the remaining balance is SSP 522 million. In addition, the outstanding balance on the Transitional Financing Agreement with Sudan amounts to SSP 6,773 million, which is due to be repaid by the financial year. Significant arrears have also been accumulated. Figure 4: Evolution of Bank of South Sudan loan balance, in SSP billions

8 Section 3: Execution Four months of salaries and transfers were paid in the second quarter including the payment for September. In total, government spending for the quarter was SSP 3,279 million, compared to a budgeted level of SSP 2,711 million. Much of the overspending was driven by salaries, as salary expenditures were SSP 475 million more than budgeted in the quarter, primarily because salary and transfer payments were made for four months (September through December). This was partially offset by the lack of spending on arrears and contingencies. The half-year outturn was SSP 6,026 million, which is SSP 589 million more than the half-year budget. Salaries were overspent by SSP 881 million in the first half year, of which SSP 676 million was due to deferred salaries from the 2013/14 financial year. Nevertheless salaries were still overspent by SSP 204 million in the first half of the financial year. If current overspending continues, salaries for the 2014/15 FY can be expected to exceed the budget by over SSP 1 billion. This might mean that salary payments in the last months of the financial year again have to be deferred. Almost 90% of the total salary overspending can be attributed to the Ministries of Defence, Veteran Affairs, Finance & Economic Planning and the Police Service and Office of the President. The Ministry of Defense alone overspent by SSP 38 million each month. Other areas of overspending on salaries include unbudgeted job specific allowances paid by the Ministries of Higher Education and Health, totaling SSP 11.5 million. The Ministry of Finance and Economic Planning overspent on incentives and overtime as well as social benefits to the value of SSP 19 and 14 million respectively, though some of this spending is for staff of other agencies. Some employer pension contributions have also not been paid this year nor been included in salary payments expenditure on salaries is therefore understated by an estimated SSP 70 million. Table 3: Spending by Chapter (SSP millions) Quarterly Q1 Q2 Q2 quarter difference difference Salaries 4,413 1,103 1,509 1,578 3,087 (475) (881) Operating 2, , Transfer 2, ,315 (143) (82) Capital (57) (59) Other (93) (92) Interest (105) (40) Arrears Contingency Total Agency Spending 10,842 2,711 2,747 3,279 6,026 (569) (605) External Loans External Grants (15) 8 Total Spending 11,279 2,820 2,747 3,363 6,110 (543) (471) Operating expenditures amounted to SSP 514 million in the second quarter, which was SSP 27 million below budget. As in the first quarter, a few agencies continued to spend operating budget at the expense of others. Over 75% of overspending on operating is attributable to the Office of the President and the Ministry of Defence. In addition, operating expenditure for the Ministry of Defence and the Office of the President increased sharply in December. These agencies spent a combined SSP 291 million in the past six months on travel to attend and conduct peace negotiations, repatriation of IDPs and army food rations. Several agencies have taken loans from the Bank of South Sudan for their operating needs, amounting to SSP 111 million. 8

9 The quarterly capital budget, excluding arrears, was overspent by SSP 58 million this quarter. While most agencies have underspent their capital budget, Defence overspent by SSP 118 million. Transfer payments were made for September in addition to the other months of this quarter, resulting in SSP 69 million overspending on state block transfers. Other expenditures were overspent by over SSP 93 million, due to subsidies to. There were no payments made from the Arrears and Contingency Funds in the second quarter. While budget execution in the second quarter continues to reflect budgetary priorities (salaries, operating and transfers) in accordance with the Building Blocks of the National Plan 2014/15, cash constraints make it increasingly difficult to fulfil essential expenditure requirements to keep the Government running effectively. Salary payments are irregular and not all agencies are receiving their operating budgets. Table 4: Agency Spending by Sector (SSP Millions) Quarterly Q1 Q2 Q2 quarter difference difference Accountability (18) Economic Functions (37) 10 Education (16) 13 Health Infrastructure (1) Natural Resources & Rural Dev't (4) 9 Public Administration (50) (150) Rule of Law 1, (12) 56 Security 3, ,441 1,616 3,057 (624) (1,073) Social and Humanitarian Affairs Block Transfers (50) (29) Contingencies, Arrears and Interest 1, Total Agency Spending (Gov't Funds) 10,842 2,711 2,747 3,279 6,026 (569) (605) At the sector level, the biggest overspending occurred in the Security sector, and to a lesser extent in the Public Administration and Economic Functions sectors. execution remained low for the Health, Infrastructure and Social and Humanitarian Affairs sectors. Each had budget execution rates of less than 70%. The Security sector overspent more in this quarter than previously. This is mainly attributable to the Ministry of Defense, which overspent on salaries (SSP 366 million) and operating (SSP 90 million). SSP 233 million of the overspending relates to September salaries paid in October, leaving SSP 163 million overspending on Q2 salaries. Overspending in the Public Administration sector continued in the second quarter, though at a lower rate. The Office of the President overspent its salaries budget by SSP 14 million in this quarter, of which SSP 3.8 million is due to September salaries being paid in October. Also, the Ministry of Foreign Affairs overspent its operating budget by SSP 36 million in this quarter. Foreign Affairs took out an SSP 50 million loan from the Bank of South Sudan to pay for embassy running costs, DSA and vehicle maintenance, over spending the Ministry s approved operating budget as a result. There was not much overspending in the Economic Functions sector, aside from SSP 74 million of unbudgeted subsidies for NilePet from the Ministry of Petroleum and Mining. Appendices 1-6 give detailed figures of budget execution by agency for several chapters (total, salaries, operating, transfers and capital). 9

10 Section 4: Donor Spending Developments External financing comprises development and humanitarian support in the form of loans and grants. Some development support is implemented by ( On- ) or in coordination with, government spending agencies and reflected in their budget appropriations ( ). The majority of support is currently implemented without the involvement of the government and is not reflected in the budget, even though it may be captured in sector plans and referred to in the budget speech. Since the December 2013 crisis, many development partners have moved much of their funding previously allocated for development support to humanitarian support. Table 5: Externally financed disbursements in Q2, 2014/15 (SSP millions) Development grants Development loans Humanitarian Grants 1 Total On- i2 103,600 0 N/A 103, ,392,241 11,343,733 N/A 57,738,974 Off- 413,207,316 4 N/A 289,046, ,253,627 Total 459,703,157 11,343, ,046, ,898,669 In Q2 2014/15, donors disbursed a total of SSP 58 million for projects coordinated with government (On- and ) (see Appendix 7 for details) and SSP 289 million in humanitarian aid 5. Support coordinated with the government is around 8% of the total externally financed support. During Q2, a project preparation advance was disbursed by the World Bank for the Energy Sector Technical Assistance Project. The advance becomes part of the loan principal if the loan is approved by the Parliament, if not approved, it will be considered as a grant. All external support in the form of loans is coordinated with government. The table in Appendix 7 reports on the expenditure of externally financed projects reported in the 2014/15 budget against the appropriated amounts. 1 Quarterly humanitarian aid disbursements sourced from UNOCHA, FTS. 2 The World Bank Local Government Service Delivery Project (LGSDP) which funds the Payam Development grants and Aid Information Management Systems funded by UNDP are currently the only two projects that use government systems for delivery (referred to as onbudget in the table above). 3 Projects that are reported in the 2014/15 budget. 4 This figures is for Q1, included as a proxy for Q2, to allow for comparison of volumes across categories. 5 Grant and loan disbursements for five World Bank projects. These could be tracked due to improvements in the Government of South Sudan s aid information management systems, meaning the Ministry is now better able to track aid disbursements. Externally funded in the first quarter amounted to SSP 26 million. 10

11 Appendix 1: Total Spending by Sector & Agency Sector/Agency Annual Q2 Actual actual Difference % of Accountability 257,616, ,808,396 59,715, ,157,552-18,349,156-14% Anti-Corruption Commission 16,092,186 8,046,093 1,744,602 4,314,709 3,731,384 46% Audit Chamber 36,014,422 18,007,211 3,587,039 5,085,937 12,921,274 72% Finance & Economic Planning 143,098,740 71,549,370 51,864, ,642,350-62,092,980-87% Fiscal & Financial Allocation & Monitoring 1,959, , , , ,315 25% Nat Bureau Statistics 56,559,864 28,279,932 1,616,418 2,712,032 25,567,900 90% National Revenue Authority 989, , , % Reconstruction & Development Fund 2,902,340 1,451, , , ,252 54% Economic Functions 317,740, ,870, ,000, ,155,784 9,714,361 6% Electricity & Dams 54,159,599 27,079, ,000 1,503,962 25,575,838 94% Electricity Corporation 43,816,639 21,908,320 4,410,320 10,851,237 11,057,083 50% Investment Authority 5,583,808 2,791,904 1,051,865 1,410,680 1,381,224 49% Nat Bureau Standards 23,310,824 11,655,412 3,444,287 5,998,452 5,656,960 49% Commerce 15,296,546 7,648,273 2,666,669 4,621,262 3,027,011 40% Trade & Industry 2,609,289 1,304, , , ,834 29% Information & Broadcasting 40,235,972 20,117,986 7,632,675 12,915,855 7,202,131 36% Irrigation & Water Resources 46,079,266 23,039,633 10,491,580 18,236,636 4,802,997 21% Petroleum & Mining 33,089,767 16,544,884 77,956,440 79,313,683-62,768, % Petroleum and Gas Commission 4,449,002 2,224, ,579 1,068,299 1,156,202 52% Telecommunication & Postal Services 33,287,917 16,643,959 3,737,733 7,413,495 9,230,464 55% Urban Water Corporation 15,821,661 7,910,831 2,863,908 4,892,412 3,018,419 38% Education 603,643, ,821, ,472, ,840,818 12,981,132 4% General Education & Instruction 436,987, ,493, ,166, ,211,239 18,282,312 8% Higher Education, Science & Technology 166,656,799 83,328,400 59,306,824 88,629,579-5,301,180-6% Health 384,524, ,262,471 66,659, ,754,115 72,508,356 38% Drug and Food Control Authority 10,770,584 5,385, , ,582 4,583,710 85% Health 357,863, ,931,962 64,797, ,659,730 62,272,232 35% HIV/Aids Commission 15,890,434 7,945,217 1,218,941 2,292,803 5,652,414 71% Infrastructure 183,235,086 91,617,543 26,653,452 92,692,845-1,075,302-1% Housing & Physical Planning 17,119,401 8,559,701 1,526,561 3,755,905 4,803,796 56% Roads & Bridges 107,045,019 53,522,510 20,315,568 49,149,325 4,373,185 8% South Sudan Roads Authority 4,270,511 2,135,256 1,521,297 1,915, ,505 10% Transport 54,800,155 27,400,078 3,290,026 37,871,864-10,471,787-38% Natural Resources & Rural 341,582, ,791,057 88,976, ,348,594 9,442,463 6% Agricultural Bank of South Sudan 2,220,332 1,110, , , ,533 36% Agriculture & Forestry 77,410,349 38,705,175 8,343,929 19,257,953 19,447,222 50% Livestock & Fisheries 26,361,503 13,180,752 2,860,343 5,540,739 7,640,013 58% Environment and Sustainable Development 15,505,099 7,752, ,463 1,407,595 6,344,955 82% Land Commission 1,996, , , , ,927 48% Wildlife Conservation 209,287, ,643,721 74,450, ,662,670-26,018,950-25% Tourism 8,801,275 4,400,638 1,333,472 3,255,873 1,144,765 26% Public Administration 876,214, ,107, ,059, ,356, ,248,787-34% Cabinet Affairs 99,260,714 49,630,357 25,569,010 36,141,284 13,489,073 27% Civil Service Commission 3,419,510 1,709, , ,048 1,076,707 63% Council of States 29,143,355 14,571,678 8,272,569 18,604,366-4,032,689-28% Employees Justice Chamber 2,731,640 1,365, , , ,767 37% Foreign Affairs 191,979,745 95,989,873 94,919, ,620,152-33,630,280-35% Labour 5,182,564 2,591,282 1,435,790 2,168, ,673 16% Public Service & HRD 10,952,081 5,476,041-2,316,800 3,664,351 1,811,690 33% Local Government Board 1,817, , , , ,363 22% Nat Constitution Review Commission 22,504,270 11,252,135 1,468,800 2,606,460 8,645,675 77% National Elections Commission 33,759,432 16,879,716 1,230,832 7,332,720 9,546,996 57% 11

12 Sector/Agency Annual Q2 Actual actual Difference % of National Legislative Assembly 252,787, ,393,843 25,152,793 72,961,066 53,432,777 42% Office of the President 217,018, ,509, ,500, ,620, ,110, % Parliamentary Affairs 4,093,775 2,046, ,411 1,030,726 1,016,162 50% Public Grievances Chamber 1,564, , , , ,269 49% Rule of Law 1,546,179, ,089, ,975, ,054,907 56,034,631 7% Bureau of Community Security & Small Arms 2,326,580 1,163, , , ,014 47% Commission for Refugees Affairs 13,909,516 6,954,758 1,842,885 3,036,795 3,917,963 56% Fire Brigade 107,975,915 53,987,958 32,296,935 60,087,905-6,099,948-11% Human Rights Commission 5,648,576 2,824, ,341 1,050,197 1,774,091 63% Interior Headquarters 135,366,079 67,683,040 21,166,311 35,083,204 32,599,836 48% Judiciary of South Sudan 72,778,614 36,389,307 12,427,419 21,891,857 14,497,450 40% Justice 56,746,510 28,373,255 8,858,543 14,421,099 13,952,156 49% Law Review Commission 7,844,676 3,922, ,892 1,130,332 2,792,006 71% Police Service 770,237, ,118, ,733, ,286,563-10,167,982-3% Prisons Service 373,345, ,672, ,172, ,453,679 2,219,044 1% Security 3,969,094,114 1,984,547,057 1,615,947,731 3,057,072,788-1,072,525,731-54% Defence 3,280,410,140 1,640,205,070 1,393,710,999 2,623,952, ,747,769-60% De-Mining Authority 3,100,450 1,550,225 1,519,704 2,513, ,912-62% Disarmament, Demobilization & Reintegration 18,109,185 9,054,593 2,133,520 3,784,412 5,270,181 58% Off President National Security 207,317, ,658,589 85,172, ,928,250-59,269,661-57% Veterans Affairs 460,157, ,078, ,410, ,894,150-33,815,570-15% Social and Humanitarian Affairs 97,810,914 48,905,457 11,909,028 25,140,087 23,765,370 49% Culture, Youth & Sports 30,250,472 15,125,236 2,391,093 4,441,190 10,684,046 71% Gender, Child & Social Welfare 13,709,928 6,854,964 3,629,269 6,271, ,642 9% Humanitarian Affairs & Disaster Management 16,307,115 8,153, ,171 1,571,830 6,581,728 81% Peace Commission 8,489,846 4,244, ,398 1,420,485 2,824,438 67% Relief & Rehabilitation Commission 21,953,565 10,976,783 3,835,253 10,753, ,931 2% War Disabled, Widows & Orphans Com 7,099,988 3,549, , ,408 2,868,586 81% Transfers 954,674, ,337, ,708, ,786,163-29,449,079-6% Abyei Block Transfers 28,000,000 14,000, ,000, % Block Transfers 624,966, ,483, ,777, ,996,533-93,513,199-30% County Block 49,999,998 24,999,999 16,666,664 29,166,662-4,166,663-17% County Development Grants 144,307,502 72,153, ,153, % STAG Transfers 107,400,000 53,700,000 46,264,678 71,622,968-17,922,968-33% Contingencies, Arrears and Interest 1,310,000, ,000, ,000, ,012, ,987,700 74% Contingencies 250,000, ,000, ,000, ,000,000 99% Arrears 800,000, ,000, ,012, ,987,700 99% Interest 260,000, ,000, ,000, ,000,000-40,000,000-31% Total (Government Funds) 10,842,316,325 5,421,158,163 3,279,079,726 6,026,372, ,214,042-11% External Loan Funding 278,284, ,142,280 70,820,259 70,820,259 68,322,021 49% External Grant Funding 158,164,010 79,082,005 13,399,633 13,399,633 65,682,372 83% Total Spending 11,278,764,895 5,639,382,448 3,363,299,618 6,110,592, ,209,649 49% 12

13 Appendix 2: Spending on Salaries by Sector & Agency Sector/Agency Annual Q2 Actual actual Difference % of Accountability 90,867,290 45,433,645 34,405,693 68,961,824-23,528,179-52% Anti-Corruption Commission 7,865,251 3,932,626 1,634,464 2,551,115 1,381,511 35% Audit Chamber 16,293,513 8,146,757 2,187,039 3,265,937 4,880,820 60% Finance & Economic Planning 55,173,608 27,586,804 28,452,360 59,569,600-31,982, % Fiscal & Financial Allocation & Monitoring 754, , , ,011-12,928-3% Nat Bureau Statistics 8,735,351 4,367,676 1,478,253 2,573,867 1,793,809 41% National Revenue Authority 504, , , % Reconstruction & Development Fund 1,541, , , , ,207 21% Economic Functions 95,374,797 47,687,399 28,157,294 46,629,797 1,057,602 2% Electricity & Dams 2,787,243 1,393, , , ,727 32% Electricity Corporation 14,325,201 7,162,601 4,365,320 7,746, ,346-8% Investment Authority 3,205,649 1,602, ,553 1,096, ,457 32% Nat Bureau Standards 7,468,291 3,734,146 3,444,287 5,998,452-2,264,307-61% Commerce 8,726,707 4,363,354 2,394,695 4,062, ,066 7% Trade & Industry 2,138,392 1,069, , , ,047 15% Information & Broadcasting 12,166,795 6,083,398 4,835,583 8,448,477-2,365,080-39% Irrigation & Water Resources 8,719,078 4,359,539 2,150,108 3,515, ,451 19% Petroleum & Mining 11,612,524 5,806,262 3,593,665 4,599,195 1,207,067 21% Petroleum and Gas Commission 3,261,753 1,630, ,579 1,068, ,578 34% Telecommunication & Postal Services 8,345,363 4,172,682 2,064,603 3,346, ,454 20% Urban Water Corporation 12,617,801 6,308,901 2,863,908 4,892,412 1,416,489 22% Education 110,273,257 55,136,629 49,030,364 82,555,484-27,418,856-50% General Education & Instruction 19,656,758 9,828,379 8,409,562 14,909,279-5,080,900-52% Higher Education, Science & Technology 90,616,499 45,308,250 40,620,802 67,646,205-22,337,956-49% Health 58,231,889 29,115,945 21,714,399 44,711,235-15,595,291-54% Drug and Food Control Authority 839, , , , ,350-25% Health 52,235,426 26,117,713 20,304,022 42,315,972-16,198,259-62% HIV/Aids Commission 5,156,713 2,578,357 1,046,052 1,872, ,319 27% Infrastructure 27,060,517 13,530,259 5,966,251 11,925,161 1,605,098 12% Housing & Physical Planning 7,156,610 3,578,305 1,194,465 3,330, ,271 7% Roads & Bridges 6,308,141 3,154, ,803 1,321,116 1,832,955 58% Transport 13,595,766 6,797,883 4,287,983 7,050, ,288-4% Natural Resources & Rural 67,112,855 33,556,428 21,677,049 37,620,342-4,063,915-12% Agricultural Bank of South Sudan 1,700, , , , ,729 17% Agriculture & Forestry 19,260,428 9,630,214 4,873,732 8,319,157 1,311,057 14% Livestock & Fisheries 5,502,013 2,751,007 1,490,873 2,678,660 72,347 3% Environment and Sustainable Development 3,349,730 1,674, ,475 1,012, ,342 40% Land Commission 819, , , , ,312-26% Wildlife Conservation 31,903,951 15,951,976 12,415,066 21,949,908-5,997,933-38% Tourism 4,576,371 2,288,186 1,223,041 2,436, ,145-6% Public Administration 398,254, ,127,499 97,374, ,041,061-2,913,562-1% Cabinet Affairs 37,336,147 18,668,074 8,292,279 15,789,289 2,878,785 15% Civil Service Commission 1,670, , , , ,248 24% Council of States 14,734,896 7,367,448 5,654,468 14,623,772-7,256,324-98% Employees Justice Chamber 1,328, , , , ,818 21% Foreign Affairs 123,105,235 61,552,618 42,562,426 74,017,097-12,464,480-20% Labour 4,113,882 2,056,941 1,435,790 2,168, ,668-5% Public Service & HRD 6,519,635 3,259,818 (2,431,866) 2,287, ,918 30% Local Government Board 1,470, , , ,424 23,981 3% Nat Constitution Review Commission 4,545,916 2,272,958 1,468,800 2,606, ,502-15% National Elections Commission 18,272,486 9,136,243 1,230,832 2,750,523 6,385,720 70% National Legislative Assembly 165,764,228 82,882,114 19,594,285 53,335,795 29,546,319 36% 13

14 Sector/Agency Annual Q2 Actual actual Difference % of Office of the President 15,882,534 7,941,267 18,031,925 31,711,772-23,770, % Parliamentary Affairs 2,567,465 1,283, , , ,819 62% Public Grievances Chamber 942, , , ,827 69,311 15% Rule of Law 386,692, ,346, ,321, ,573,651-35,227,515-18% Bureau of Community Security & Small Arms 1,446, , , , ,963 15% Commission for Refugees Affairs 4,843,225 2,421,613 1,637,885 2,189, ,818 10% Fire Brigade 15,530,221 7,765,111 3,702,843 8,654, ,176-11% Human Rights Commission 3,080,002 1,540, ,341 1,050, ,804 32% Interior Headquarters 44,907,682 22,453,841 14,666,311 23,521,199-1,067,358-5% Judiciary of South Sudan 60,660,706 30,330,353 12,427,419 21,891,857 8,438,496 28% Justice 35,136,322 17,568,161 7,137,716 12,499,577 5,068,584 29% Law Review Commission 3,567,425 1,783, , ,732 1,057,981 59% Police Service 185,755,884 92,877,942 75,641, ,828,409-45,950,467-49% Prisons Service 31,764,329 15,882,165 9,781,364 18,599,323-2,717,159-17% Security 3,140,488,469 1,570,244,235 1,184,935,102 2,349,569, ,325,582-50% Defence 2,518,430,234 1,259,215, ,964,370 1,986,480, ,264,990-58% De-Mining Authority 2,477,257 1,238,629 1,519,704 2,513,137-1,274, % Disarmament, Demobilization & Reintegration 6,685,161 3,342,581 1,263,520 2,494, ,291 25% Off President National Security 155,887,381 77,943,691 52,776,624 94,188,132-16,244,442-21% Veterans Affairs 457,008, ,504, ,410, ,894,150-35,389,932-15% Social and Humanitarian Affairs 38,178,738 19,089,369 8,318,761 14,815,678 4,273,691 22% Culture, Youth & Sports 9,680,873 4,840,437 1,578,345 2,846,848 1,993,589 41% Gender, Child & Social Welfare 6,175,728 3,087,864 1,195,778 1,925,544 1,162,320 38% Humanitarian Affairs & Disaster Management 4,040,611 2,020, ,138 1,331, ,751 34% Peace Commission 3,625,684 1,812, ,404 1,357, ,351 25% Relief & Rehabilitation Commission 11,520,860 5,760,430 3,725,252 6,672, ,402-16% War Disabled, Widows & Orphans Com 3,134,982 1,567, , , ,083 57% Transfers Contingencies, Arrears and Interest Total (Government Funds) 4,412,535,083 2,206,267,542 1,577,901,375 3,087,404, ,136,508-40% Note: Most agencies have exceeded their half year salary budgets because seven months of salaries were paid during the period. During the first quarter most agencies paid salaries for June, July and August and Defense also paid for May. During the second quarter, salaries were paid for Sept, Oct, Nov and Dec. 14

15 Appendix 3: Spending on Operating by Sector & Agency Sector/Agency Annual Q2 Actual actual % of Accountability 161,749,502 80,874,751 25,310,153 78,195,728 Difference 2,679,023 3% Anti-Corruption Commission 6,226,935 3,113, ,138 1,763,594 1,349,874 43% Audit Chamber 16,720,909 8,360,455 1,400,000 1,820,000 6,540,455 78% Finance & Economic Planning 87,925,132 43,962,566 23,412,265 74,072,750-30,110,184-68% Fiscal & Financial Allocation & Monitoring 1,205, , , , ,243 43% Nat Bureau Statistics 47,824,513 23,912, , ,165 23,774,092 99% National Revenue Authority 484, , , % Reconstruction & Development Fund 1,361, ,670 24,000 56, ,046 92% Economic Functions 133,527,913 66,763,957 5,607,153 14,153,544 52,610,413 79% Electricity & Dams 3,372,356 1,686,178 15, ,067 1,131,111 67% Electricity Corporation 29,491,438 14,745,719 45,000 3,104,291 11,641,428 79% Investment Authority 2,378,159 1,189, , , ,768 74% Nat Bureau Standards 8,548,243 4,274, ,274, % Commerce 6,569,839 3,284, , ,974 2,725,946 83% Trade & Industry 470, ,449 22,662 22, ,787 90% Information & Broadcasting 24,069,177 12,034,589 2,797,092 4,467,378 7,567,211 63% Irrigation & Water Resources 7,816,898 3,908, , ,317 3,504,132 90% Petroleum & Mining 21,477,243 10,738, , ,276 10,079,346 94% Petroleum and Gas Commission 1,187, , , % Telecommunication & Postal Services 24,942,554 12,471,277 1,673,130 4,067,267 8,404,010 67% Urban Water Corporation 3,203,860 1,601, ,601, % Education 158,272,070 79,136,035 19,260,070 28,690,380 50,445,655 64% General Education & Instruction 82,231,770 41,115, ,048 7,707,006 33,408,879 81% Higher Education, Science & Technology 76,040,300 38,020,150 18,686,022 20,983,374 17,036,776 45% Health 173,289,712 86,644,856 2,343,995 2,907,436 83,737,420 97% Drug and Food Control Authority 7,930,834 3,965, , ,357 3,687,060 93% Health 154,625,157 77,312,579 1,892,749 2,208,314 75,104,265 97% HIV/Aids Commission 10,733,721 5,366, , ,765 4,946,096 92% Infrastructure 35,174,569 17,587,285 2,421,803 3,237,562 14,349,723 82% Housing & Physical Planning 4,962,791 2,481, , ,871 2,055,525 83% Roads & Bridges 10,736,878 5,368,439 5,925 5,925 5,362, % South Sudan Roads Authority 4,270,511 2,135,256 1,521,297 1,691, ,345 21% Transport 15,204,389 7,602, ,485 1,113,855 6,488,340 85% Natural Resources & Rural 57,010,879 28,505,440 2,435,181 9,775,551 18,729,889 66% Agricultural Bank of South Sudan 519, , , % Agriculture & Forestry 21,839,171 10,919, ,547 5,308,246 5,611,340 51% Livestock & Fisheries 14,148,990 7,074, ,151 6,546,344 93% Environment and Sustainable Development 4,755,369 2,377, , ,792 2,005,893 84% Land Commission 1,176, , , % Wildlife Conservation 10,346,360 5,173,180 1,745,495 2,747,819 2,425,361 47% Tourism 4,224,904 2,112, , ,543 1,292,909 61% Public Administration 415,953, ,976, ,708, ,014, ,037,667-73% Cabinet Affairs 61,924,567 30,962,284 17,276,731 20,351,995 10,610,289 34% Civil Service Commission 1,748, , , % Council of States 14,408,459 7,204,230 2,618,101 3,980,594 3,223,636 45% Employees Justice Chamber 822, , , % Foreign Affairs 65,874,510 32,937,255 52,002,182 55,247,705-22,310,450-68% Labour 1,068, , , % Public Service & HRD 4,432,446 2,216, ,066 1,376, ,772 38% Local Government Board 346, , , % Nat Constitution Review Commission 17,958,354 8,979, ,979, % National Elections Commission 15,486,946 7,743, ,582,197 3,161,276 41% National Legislative Assembly 69,307,083 34,653,542 5,558,508 19,625,271 15,028,271 43% 15

16 Sector/Agency Annual Q2 Actual actual % of Office of the President 160,425,858 80,212,929 72,041, ,301,356 Difference -173,088, % Parliamentary Affairs 1,526, ,155 97, , ,343 28% Public Grievances Chamber 621, , , % Rule of Law 300,781, ,390,764 15,252,584 53,914,106 96,476,658 64% Bureau of Community Security & Small Arms 437, , , % Commission for Refugees Affairs 9,066,291 4,533, , ,000 3,686,146 81% Fire Brigade 5,432,142 2,716,071 36,940 36,940 2,679,131 99% Human Rights Commission 2,568,574 1,284, ,284, % Interior Headquarters 66,158,397 33,079,199 6,500,000 11,562,005 21,517,194 65% Judiciary of South Sudan 12,117,908 6,058, ,058, % Justice 21,610,188 10,805,094 1,720,827 1,921,522 8,883,572 82% Law Review Commission 4,277,251 2,138, , ,600 1,734,026 81% Police Service 112,775,655 56,387,828 2,324,135 28,388,081 27,999,747 50% Prisons Service 66,337,419 33,168,710 4,315,682 10,753,958 22,414,752 68% Security 723,564, ,782, ,836, ,535, ,753,843-44% Defence 661,979, ,989, ,070, ,425, ,435,862-37% De-Mining Authority 623, , , % Disarmament, Demobilization & Reintegration 6,382,560 3,191, , ,000 2,821,280 88% Off President National Security 51,429,797 25,714,899 32,396,000 68,740,118-43,025, % Veterans Affairs 3,148,725 1,574, ,574, % Social and Humanitarian Affairs 59,632,176 29,816,088 3,590,267 10,324,409 19,491,679 65% Culture, Youth & Sports 20,569,599 10,284, ,748 1,594,342 8,690,458 84% Gender, Child & Social Welfare 7,534,200 3,767,100 2,433,491 4,345, ,678-15% Humanitarian Affairs & Disaster Management 12,266,504 6,133, , ,275 5,892,977 96% Peace Commission 4,864,162 2,432,081 62,994 62,994 2,369,087 97% Relief & Rehabilitation Commission 10,432,705 5,216, ,001 4,081,020 1,135,333 22% War Disabled, Widows & Orphans Com 3,965,006 1,982, ,982, % Transfers No Contingencies, Arrears and Interest 250,000, ,000, ,000, ,000,000 99% Contingencies 250,000, ,000, ,000, ,000,000 99% Total (Government Funds) 2,468,955,958 1,234,477, ,766,749 1,083,749, ,728,949 12% 16

17 Appendix 4: Spending on Transfers by Sector & Agency Sector/Agency Annual Q2 Actual actual % of Accountability Difference 0 No Economic Functions 26,837,580 13,418,790 8,181,121 14,317, ,441-7% Nat Bureau Standards 2,294,290 1,147, ,147, % Irrigation & Water Resources 24,543,290 12,271,645 8,181,121 14,317,231-2,045,586-17% Education 335,098, ,549,287 98,182, ,594,954-10,045,668-6% General Education & Instruction 335,098, ,549,287 98,182, ,594,954-10,045,668-6% Health 151,003,341 75,501,671 42,601,203 72,135,444 3,366,227 4% Health 151,003,341 75,501,671 42,601,203 72,135,444 3,366,227 4% Infrastructure No Natural Resources & Rural 210,058, ,029,190 64,841, ,929,421-8,900,231-8% Agriculture & Forestry 36,310,750 18,155,375 3,181,650 5,630,550 12,524,825 69% Livestock & Fisheries 6,710,500 3,355,250 1,369,470 2,333,928 1,021,322 30% Wildlife Conservation 167,037,130 83,518,565 60,290, ,964,943-22,446,378-27% Public Administration 580, , , ,422-48,358-17% Employees Justice Chamber 580, , , ,422-48,358-17% Rule of Law 782,887, ,443, ,920, ,055,330-37,611,382-10% Bureau of Community Security & Small Arms 442, , , % Fire Brigade 83,513,552 41,756,776 28,557,152 51,396,679-9,639,903-23% Police Service 431,705, ,852, ,287, ,558,253-6,705,441-3% Prisons Service 267,226, ,613,160 89,075, ,100,398-21,487,238-16% Security 5,041,464 2,520, , ,122 1,600,610 63% Disarmament, Demobilization & Reintegration 5,041,464 2,520, , ,122 1,600,610 63% Social and Humanitarian Affairs No Transfers 954,674, ,337, ,708, ,786,163-29,449,079-6% Abyei Block Transfers 28,000,000 14,000, ,000, % Block Transfers 624,966, ,483, ,777, ,996,533-93,513,199-30% County Block 49,999,998 24,999,999 16,666,664 29,166,662-4,166,663-17% County Development Grants 144,307,502 72,153, ,153, % STAG Transfers 107,400,000 53,700,000 46,264,678 71,622,968-17,922,968-33% Contingencies, Arrears and Interest No Total (Government Funds) 2,466,181,531 1,233,090, ,128,093 1,315,077,087-81,986,322-7% 17

18 Appendix 5: Spending on Capital by Sector & Agency Sector/Agency Annual Q2 Actual actual % of Accountability 5,000,000 2,500, Difference 2,500, % Anti-Corruption Commission 2,000,000 1,000, ,000, % Audit Chamber 3,000,000 1,500, ,500, % Economic Functions 62,000,000 31,000, ,000, % Electricity & Dams 48,000,000 24,000, ,000, % Nat Bureau Standards 5,000,000 2,500, ,500, % Information & Broadcasting 4,000,000 2,000, ,000, % Irrigation & Water Resources 5,000,000 2,500, ,500, % Education No Health 2,000,000 1,000, ,000, % Drug and Food Control Authority 2,000,000 1,000, ,000, % Infrastructure 121,000,000 60,500,000 18,265,398 77,530,122-17,030,122-28% Housing & Physical Planning 5,000,000 2,500, ,500, % Roads & Bridges 90,000,000 45,000,000 19,825,840 47,822,284-2,822,284-6% Transport 26,000,000 13,000,000-1,560,442 29,707,838-16,707, % Natural Resources & Rural 7,400,000 3,700,000 23,280 23,280 3,676,720 99% Environment and Sustainable Development 7,400,000 3,700,000 23,280 23,280 3,676,720 99% Public Administration 53,666,375 26,833, ,896 5,235,860 21,597,328 80% Foreign Affairs 3,000,000 1,500, , ,350 1,144,650 76% National Legislative Assembly 17,716,375 8,858, ,858, % Office of the President 32,950,000 16,475, ,546 4,880,510 11,594,490 70% Rule of Law 75,817,378 37,908,689 1,481,150 5,511,820 32,396,869 85% Fire Brigade 3,500,000 1,750, ,750, % Interior Headquarters 24,300,000 12,150, ,150, % Police Service 40,000,000 20,000,000 1,481,150 5,511,820 14,488,180 72% Prisons Service 8,017,378 4,008, ,008, % Security 100,000,000 50,000, ,675, ,046, ,046, % Defence 100,000,000 50,000, ,675, ,046, ,046, % Social and Humanitarian Affairs No Transfers No Contingencies, Arrears and Interest 800,000, ,000, ,012, ,987,700 99% Arrears 800,000, ,000, ,012, ,987,700 99% Total (Government Funds) 1,226,883, ,441, ,424, ,360, ,081,578 55% 18

19 Appendix 6: Spending on Other Expenditures by Sector & Agency Sector/Agency Annual Q2 Actual actual Difference % of Accountability No Economic Functions ,055,212 74,055,212-74,055,212 No Education No Health No Infrastructure No Natural Resources & Rural No Public Administration 7,760,000 3,880,000 20,803,771 21,726,527-17,846, % Office of the President 7,760,000 3,880,000 20,803,771 21,726,527-17,846, % Rule of Law No Security No Social and Humanitarian Affairs No Transfers No Contingencies, Arrears and Interest 260,000, ,000, ,000, ,000,000-40,000,000-31% Interest 260,000, ,000, ,000, ,000,000-40,000,000-31% Total (Government Funds) 267,760, ,880, ,858, ,781, ,901,739-99% 19

20 Appendix 7: Disbursements against the externally financed projects recorded in the 2014/15 Project Title (Donor) Fund code Loan/ Grant GRSS Agency 2014/15 Exp. Disb. (SSP) Q1 Disb. (SSP) Q2 Disb. (SSP) H1 (%) Emergency Food Crisis Response (WB) Grant Agriculture 16,200,000 4,427,530 7,179,986 72% LGSDP (WB) Loan Public Serv. 39,530, ,802,468 22% LGSDP (MDTF) Grant Public Serv. 19,464,010 N/A N/A N/A Health Rapid Results Project (WB) - 6 Loan Health 15,508, % Health Rapid Results Project (WB) Grant 7 Health 38,800,000 14,411,851 29,627, % Private Sector Development (WB) Grant Trade 7,400, % Rural Roads Project (WB) Grant Transport 36,300,000 5,485,037 9,584,455 42% Institutional Dev & Cap Building (WB) Loan Finance 7,400,000 1,468, ,593 26% Statistical Capacity Building Project (WB) Safety Nets and Skills Development (WB) Loan Statistics 2,400, , ,377 37% Loan Agriculture 8,900, % Airport (China Exim) Loan Transport 150,000,000 N/A N/A N/A Fula Rapids Hydropower Project (AfDB) 8 Fula Rapids Hydropower Project (Norway) Grant Elec. & Dams N/A Grant Elec. & Dams 40,000, % Regional Transport Project (WB) Loan Transport 48,400, ,770,295 4% Aid Information Management System (UNDP) Grant Finance , Total 455,912,580 26,380,318 57,839,574 18% 6 A fund code is only available for the grant component of this project. 7 The grant component of this project comprises two separate grants P127187/TF12272 and P146413/IDAH This project has not yet become effective and is more accurately referred to as Juba Power Distribution System. 9 This value remains subject to revision 20