Page 545 - 2016 - Vol. 40

the creation of 25 000 new jobs in the public sector. The
share of Federal transfers to state governments was 27% of
total government revenue, 5% less than the budgeted
amount, and will remain the same in 2012 Spending on
social services, including health and education, was 1.1 %
of the budget. Capital expenditure was 8.2% of the 2011
budget, 50% less than originally budgeted. The challenge
ahead is to balance the deficit financing mix. In addition to
selling government bonds, further effort is needed to
mobilize donor support for the budget under favorable-
terms. Sudan's high external debt stock together with the
economic sanctions imposed by the US continues to limit
its access to international credit markets. The government
needs to improve debt sustainability and implement critical
reforms to establish widespread support for debt relief
(Economic Commission for Africa, 2012).

Sudanese tax to GDP ratio is very low 6% in 2013
compared with an average of about 17% in the Low-
income countries (UDCs) and is projected to average about
6.3% during (2014-15), as a result of the extensive tax
exemptions and incentives. Expanding the taxable capacity
requires streamlining tax exemptions, including improving
revenue administration and business registration. Over the

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