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Sudan plans subsidies cut

Wednesday December 09 2015
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A woman, her cousin, her son and her son's friend carry their belongings as they walk through the United Nations base outside Bentiu, which hosts around 118,000 people uprooted during the country's 21-month old civil war, on September 17, 2015. AFP PHOTO

The Sudanese government plans to cut subsidies on some essential commodities as part of its austerity measures, official disclosed.

Speaking in parliament, Finance minister Badr Eldien Mahmoud urged legislators to endorse the government measures contained in the 2016 budget to cushion the national economy against collapse.

He said the economy could not continue supporting the subsidies, citing the widening gap between income from exports and what was spent on imports.

Current distress

''The lifting of the subsidies will provide a lot of money which can be used to support productivity so we can overcome the current distress living,'' said Mr Mahmoud.

''Our plan is to decrease the cost of subsidies, minimise inflation and importation in order to reallocate that cash to agricultural production,'' he added.
Products targeted include fuel, wheat and electricity.

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Increase wages
In September 2013, dozens of people were killed in nationwide demonstrations after the government lifted subsidy on fuel products.

Mr Mahmoud further pledged to increase wages, pensions and support to the low-income people in order to cushion them.

The Sudanese pound has dramatically dropped against the US dollar this year.

Oil revenues

The economy has been under pressure since 2011, when the country lost three quarters of its oil revenues after the separation of South Sudan.

Human rights organisations said that at least 200 people were killed in September 2013 riots, but the government put the number at 85.

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