Sudan to cut government spending, increase social spending

FILE PHOTO: A man counts notes after receiving the new Sudanese currency at a central bank branch in Khartoum July 24, 2011. REUTERS/ Mohamed Nureldin Abdallah//File Photo

KHARTOUM (Reuters) - Sudan will cut its government spending and increase social spending, the cabinet said on Saturday, after completing a raft of rapid economic reforms this month that threaten to compound pressures on the majority of the population.

Earlier this month, Sudan fully removed subsidies on car petrol and diesel, and in February it devalued its currency and began a policy of a flexible managed float.