In the news Ministry of Finance and National Economy formally announced its intention to lift fuel subsidies in the coming days after receiving clearance from the government saying it will be implemented in conjunction an increase in the minimum wage. The Head of Sudan workers Union Prof Ibrahim Ghandour said that the minimum wage increase will range between11% to 55%. But many observers dismiss the planned hike in wages saying it will be too small to make a dent in the costs of living for most Sudanese households. The Ministry said that they plan to gradually lift the fuel subsidies and that the government will renew focus on alternative sources of revenue including wheat, Gum Arabic and livestock to boost its production. In 2013, Sudan is expected to achieve a 1.2% growth which is higher than the -0.6% projected by the IMF last year. Next Year’s GDP is also forecasted to stand at 2.6% which is slightly better than the 2.1% predicted in the IMF last assessment of Sudan’s economy. However, the budget deficit treatment is not only an accountancy process, but it is an economic process which has deep social and political dimensions. The decision of lifting fuel subsidies as a treatment disregarded all those dimensions, at a time when the majority of the citizens are suffering the tremendous price hikes of most of the essential commodities. We will repeat saying that economy is the science of alternatives, and that means that the Finance Ministry has several alternatives other than lifting fuel subsidies. For instance there should be decisive measures in reducing the states structure considering that we have now more than 180 constitutional positions in Federal and states levels. These some 180 posts could be reduced to the minimum to save the billions that go to salaries and allowances. The Ministry could also initiate a clear developmental economic vision to encourage production in all fields to upgrade the non-oil revenues. We believe the wage increase or supporting the low-income sectors to confront the consequences of lifting fuel subsidies will not any positive impact because the previous experiences proved that the price hikes continue immediately after any wage increase. The decision of lifting fuel subsidies will have destructive negative impacts on the Sudanese consumers. We urge the Ministry of Finance, the Council of Ministers, and the National Assembly to abandon the decision to enable people continue their dignified life.
Posted on: Sun, 29 Sep 2013 08:10:38 +0000
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