Sudan’s 2019 Budget Keeps Subsidies, Fights Corruption

Customers look on as a vender displays fresh produce in Khartoum, Sudan December 2, 2016. REUTERS/Mohamed Nureldin Abdallah
Customers look on as a vender displays fresh produce in Khartoum, Sudan December 2, 2016. REUTERS/Mohamed Nureldin Abdallah
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Sudan’s 2019 Budget Keeps Subsidies, Fights Corruption

Customers look on as a vender displays fresh produce in Khartoum, Sudan December 2, 2016. REUTERS/Mohamed Nureldin Abdallah
Customers look on as a vender displays fresh produce in Khartoum, Sudan December 2, 2016. REUTERS/Mohamed Nureldin Abdallah

Sudan’s government has adopted its 2019 state budget as the country reeled from fresh protests over the rising cost of bread.

The new budget kept subsidies on basic commodities and for the first time included a clause on fighting corruption.

Chairman of the The Sudanese Transparency Organization (STO) Al-Tayeb Mukhtar welcomed the allocation of 1.13 million dollars to eliminate corruption.

He said that according to the United Nations, the state and the government should fund and help the parties combating corruption, whether they are state institutions or representatives of civil society.

The budget was adopted on Thursday as Sudan’s economy struggles under the burden of a climbing inflation and deadly protests that were sparked this week when the government decided to raise the price of a loaf of bread from one Sudanese pound to three (from about two to six US cents).

While not adding new taxes or tariffs in the new budget, the government removed many of the waivers granted to investors and importers. It forecast a 39 percent growth in revenues, reaching 3.43 billion dollars, and a drop from 3.7 to 3.3 percent in deficit.

Prime Minister and Minister of Finance Motazz Moussa told the parliament in a statement that the budget forecast a 5.1 percent economic growth and that subsidies would reach around 1.4 billion dollars, including 53 million dollars for bread and gas.

In an attempt to fight inflation, he also urged local authorities to allow vendors to sell their groceries and other products on their carts without imposing any fees on them.



Gold Falls to One-week Low as Dollar Firms after Tariff Deadline Extension

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Gold Falls to One-week Low as Dollar Firms after Tariff Deadline Extension

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices retreated to a one-week low on Monday as the dollar firmed and traders digested US President Donald Trump's extension of his July 9 tariff deadline to August 1 and assertion that the US is close to several trade deals.

Spot gold was down 0.8% at $3,307.87 an ounce at 1302 GMT after hitting its lowest since June 30 at $3,296.09. US gold futures lost 0.7% to $3,318.

The stronger dollar, up 0.2% against a basket of other major currencies, makes dollar-priced gold more expensive for buyers with other currencies, Reuters reported.

"The market volumes remain quiet at this moment, and price action is probably still just reflecting the latest piece of economic data, but also starting to look forward to the potential for trade deals to be announced," said Daniel Ghali, commodity strategist at TD Securities.

Last week's stronger than expected US payroll data cemented expectations that the Federal Reserve is unlikely to cut interest rates as early as previously expected.

Minutes of the Fed's latest policy meeting and speeches by several Fed officials are due this week for further insights into the central bank's policy path.

Elsewhere, China's central bank added gold to its reserves in June for an eighth consecutive month, official data from the People's Bank of China (PBOC) showed on Monday.

"The PBoC in particular has been diversifying foreign exchange reserves substantially and an uptick in uncertainty and geopolitical risk may speed up the process," said Zain Vawda, analyst at MarketPulse by OANDA.

In other precious metals, spot silver fell 1.6% to $36.32 an ounce, platinum shed 2.9% to $1,350.97 and palladium lost 3% to $1,100.65.