1. GoSS Future Needs Aggrey Tisa Sabuni Ag. Under Secretary, MoFEP GoSS

2. Current Financing Position Over 90% of GoSS Revenues come from Oil Highly risky for Government budget to be dependent on a single source of revenue Oil prices are volatile GoSS is working to increase its revenues from non-oil sources, but it takes time to develop a tax base and tax administration framework

3. Raising Non-Oil Revenues GoSS is engaged in discussions with GoNU counterparts to agree collection & sharing of national revenues collected in the South MoFEP has prepared an interim order for Southern Sudan Personal Income Tax Southern Sudan Tax Bill is being drafted Preparations underway to establish Southern Sudan Revenue Authority

4. Current Expenditure Position 2007 GoSS Budget amounts to $1.5bn A large proportion of the GoSS Budget is currently allocated to SPLA & Salaries (GoSS & States) Defence spending remains a priority It will take time to streamline GoSS salary bill Challenges include:  Demobilisation of former combatants in the SPLA and Organised Forces  Provision of terminal benefits to excess personnel on the Government payroll, particularly in the States

5. Capital Spending 30% ($452m) of 2007 GoSS Budget is allocated to capital spending Approx $100m is counterpart for MDTF projects, while $250m is for GoSS projects in Transport, Housing, Agriculture, Telecoms, Information & SPLA Big concern for sustainability of capital spending is that MDTF donor funds have not been committed to enable completion of existing MDTF projects

6. Future Needs $170m of additional MDTF donor funding required to complete approved MDTF projects Another $100m required to finance pipeline projects (HIV, Agriculture, Private Sector Development, Environment) Capacity Building Trust Fund needs $30m replenishment – GoSS training needs are enormous Bilateral pledges also welcome, though must be co-ordinated with GoSS budget and other donor funding mechanisms