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
TT

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.



Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
TT

Oil Prices Steady as Markets Weigh Demand against US Inventories

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown, File)

Oil prices were little changed on Thursday as investors weighed firm winter fuel demand expectations against large US fuel inventories and macroeconomic concerns.

Brent crude futures were down 3 cents at $76.13 a barrel by 1003 GMT. US West Texas Intermediate crude futures dipped 10 cents to $73.22.

Both benchmarks fell more than 1% on Wednesday as a stronger dollar and a bigger than expected rise in US fuel stockpiles pressured prices.

"The oil market is still grappling with opposite forces - seasonal demand to support the bulls and macro data that supports a stronger US dollar in the medium term ... that can put a ceiling to prevent the bulls from advancing further," said OANDA senior market analyst Kelvin Wong.

JPMorgan analysts expect oil demand for January to expand by 1.4 million barrels per day (bpd) year on year to 101.4 million bpd, primarily driven by increased use of heating fuels in the Northern Hemisphere.

"Global oil demand is expected to remain strong throughout January, fuelled by colder than normal winter conditions that are boosting heating fuel consumption, as well as an earlier onset of travel activities in China for the Lunar New Year holidays," the analysts said.

The market structure in Brent futures is also indicating that traders are becoming more concerned about supply tightening at the same time demand is increasing.

The premium of the front-month Brent contract over the six-month contract reached its widest since August on Wednesday. A widening of this backwardation, when futures for prompt delivery are higher than for later delivery, typically indicates that supply is declining or demand is increasing.

Nevertheless, official Energy Information Administration (EIA) data showed rising gasoline and distillates stockpiles in the United States last week.

The dollar strengthened further on Thursday, underpinned by rising Treasury yields ahead of US President-elect Donald Trump's entrance into the White House on Jan. 20.

Looking ahead, WTI crude oil is expected to oscillate within a range of $67.55 to $77.95 into February as the market awaits more clarity on Trump's administration policies and fresh fiscal stimulus measures out of China, OANDA's Wong said.