40 Billion Rials to be added to 1999’s budget [Archives:1999/42/Front Page]

October 18 1999

SANAA: A total of 40.1 billion Rials (approximately $250 million) will be provided to supplement the 1999 budget to cover the costs of services that are lined up to be implemented and also to cover the debt of the year. The government expects that the additional resources will be generated by higher oil prices and levy of income taxes. The parliament is expected to approve this amount within the coming days. 
Yemen’s 1999 budget was around 335.5 billion rials with a projected deficit of YR 41.1 billion. With this supplement, the deficit will unexpectedly reach YR 81 billion. According to available economic information, this supplement has already been taken by the government but the government wants the approval of the parliament to avoid embarrassment when discussing the year 2000 budget in the parliament. This was a shocking demand for the public as they expected the deficit to be covered by increasing oil revenues. At another level, the government requested the World Bank and the International Monetary Fund last April to raise its loan for 1999-2003 to USD 876 million from USD 340 million for the last 4 years. Hence, the loan from the WB would reach $1. 2 billion.