Budget Deficit Despite High Oil Prices [Archives:2000/42/Local News]
October 16 2000
Despite rise of oil prices in world markets, it is expected that deficit of the general budget this year until the end of 2001 will not reach the target level suggested by the IMF at 3% of the total local production.
Economists attach reasons to internal disorder caused by the rise in consumption against local production as well as increase in expenditure as against national revenues.
Deficit of the budget has seen an improvement in 1997 when it fell to 0.9%. This was followed by a rise to 5.8%. In 1999 it was identified by the IMF as 4% of the gross domestic product.
Economists still amazed at the inability of Yemen to get rid of deficit despite the increase in oil prices.
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