Parliament urges government to limit expenses [Archives:2005/902/Business & Economy]

Financial Affairs Committee at the parliament mentioned in its report on draft law on opening an additional appropriation of the state budget of fiscal year 2005 that there were already excesses in expenses for subsidizing oil products. The excesses were more than YR 138 billion until last July than what was estimated for it in the state budget. The report also expected that the excess would by the end of this year to amount to YR 237 billion. That had made the government allocate 53% of expenses of the YR 451 billion additional appropriation for subsidizing oil products. The report, which was discussed by parliament, had stressed the importance of implementing developmental projects on scientific planning basis and within priorities of public spending. They should be within the commitments to laws and legislations concerning execution of developmental projects. The report considered exaggeration in calculating the price a barrel of oil, sold to refineries, as higher than the price of crude oil exported abroad, as one of the reasons leading to inflation in expenses of oil products subsidiary.

The committee's report demanded reform and development of the system of financial legislations in order to stop government violations in implementation of projects whose costs are included in state budgets. The report has accused the government of including obligations in the additional appropriation, mentioning that they could have been postponed to the budget of 2006 with the aim of benefiting from the increase achieved in the revenues of the budget of 2005 and to alleviate burdens on 2006 budget. The report contained a demand for holding accountable those who helped selling of 60% of the share of a Yemeni company's share in the oil sector 53, given that the said company is still under establishment. That has resulted in compensations sustained by the state treasury, accusing the government of paying YR3.8 billion as a settlement in order to abolish the contract of selling the share of that Yemeni company, still under establishment. Report of the financial committee has also demanded allotment of YR 3 billion for the ministry of electricity to be spent on implementing necessary power project in the countryside.

The government had last September submitted request for additional appropriation of YR 451 billion, YR23 billion of which for facing costs of implementing the national strategy of wages and salaries.
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