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Tax-Heavy Sudan Budget Might Spark Yet More Anti-Military Unrest
The Oct. 25 military takeover, which undermined plans for a transition to democracy after three decades of Bashir’s autocratic rule, has already taken a bloody toll. At least 76 people have been killed by security forces in near-daily protests in the aftermath, according to a doctors committee that supports the demonstrations. The United Nations this month began consultations with the army and its opponents in a bid to reach a political solution.
The putsch, which sidelined civilian politicians and led the U.S. and development agencies to suspend hundreds of millions of dollars in aid and budgetary support, is also hampering Sudan’s eligibility for $50 billion of debt relief under an International Monetary Fund initiative. Senior U.S. diplomats visiting Sudan last week also threatened targeted sanctions on unidentified individuals.
General expenditure in Sudanese pounds rises by roughly a third in this year’s budget, although authorities sharply devalued the currency in February 2021. Summary documents don’t detail any specific tax increases nor break down spending by sector, but state some funding is earmarked for election preparations.
Sudan has regularly spent significant annual sums on the military and security. The government said the budget seeks to direct financial resources toward reducing inflation, poverty and unemployment while boosting productivity in key industries.
“Sectors including agriculture, manufacturing are on the verge of stopping as there is no real administration” following the coup, said Mohamed Aljak, an economics professor at Khartoum University. “Such deterioration will definitely affect the general mood of the people. The aggravated economic and political situation can lead to the expansion of the protests.”
Those who took to the streets again Monday in demonstrations that saw three deaths, said economic conditions were making life increasingly difficult.
“One cannot form a new government to lead the economy and at the same time spend huge money on the logistics and other needs of the security organs and police to crack down on protests,” said Salim Nasser, a member of a self-styled resistance committee in Khartoum. “This situation will lead to total economic collapse.”
Source: Bloomberg Business News