JUBA, Aug. 29 (Xinhua) -- The recently approved fiscal year budget in South Sudan, which recorded a 187 percent rise above the previous year's budget, is expected to make little difference to the country's devastated economy, an analyst said on Monday.
Professor James Alic Garang of Upper Nile University said the 520 million U.S. dollars for the financial year 2016/2017 which was unveiled last week is too little to run an economy in a volatile country like South Sudan.
"The government must resort to alternative ways including acquiring external funding to have a well running economy," Garang told Xinhua in Juba.
"If the price of goods in the market continues to rise, then very little will be done as people will continue to suffer," he said.
South Sudan's currency, the pound, has fallen sharply since the government allowed free floating of exchange rate in December, pushing price to increase several times.
Information Minister Michael Makuei said the government will fund its budget through oil and non-oil revenues.
He said the increase in the budget is meant to cover peace implementation and expand transitional government of national unity.
He however noted that the success or failure of the proposed budget will depend on the level of peace and the performance of the revenue and price stability in the country.
Over the years since the country achieved independence, 98 percent of its budget has been coming from oil, but civil strife which broke out in December 2013 and a drop in the global oil price have complicated matters for the country.
