Economic Development, Oil Shutdown and Deficit Financing in Southern Sudan

Abstract

This paper is a part of my PhD research under title “Political Stability and Economic Development; Case of South Sudan” and it tries to focus on the impact of oil shutdown on South Sudan financial Budget and possibility of deficit financing. Due to the government’s shutdown of oil production, the South Sudan Council of Ministers approved austerity measures to eliminate its impact on Economic Development. This paper tries to focus on the impact of oil shutdown on South Sudan financial budget and possibility of deficit financing. It will focus on the austerity measures taken by the RSS government to align its expenditures with revenues and find a way of raising financial resources and how to secure necessary sources that can be used to finance economic development.

Keywords: oil shutdown, deficit financing, money issuing, debt financing, inflation

JEL Classification: A00, A10, A11, N5, N17, N27, N37, N50, N57, P2, P20, P24