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UPDATE 1-Sudan 2019 budget includes 66 bln Sudan pounds in subsidies -PM

Updated: 19-12-2018 20:46 IST
Sudan's 2019 budget includes 66 billion Sudanese pounds ($1.4 billion) in subsidies, 53 billion of which is for fuel and bread, Prime Minister Motazz Moussa said on Wednesday.

Fuel is sold in Sudan at 10 percent of its real cost, while the government pays for 90 percent of its value in direct subsidies, Moussa said at a press conference.

The government pays $36 million in fuel subsidies per week and 35 million Sudanese pounds in bread subsidies per day, the prime minister said.

"There will be no lifting of subsidies," Moussa said. "But there will be new policies to direct subsidies to the deserving, as we cannot subsidise the financially able."

The government has been expanding its money supply to finance its budget deficit, spurring inflation and weakening the currency's value.

Sudan lost three-quarters of its output of oil, a crucial source of revenue and foreign currency, when the south of the country seceded in 2011. ($1 = 47.4992 Sudanese pounds) (Reporting by Khalid Abdelaziz; Writing by Yousef Saba; Editing by Hugh Lawson)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)