Spending outweighs revenue by YR 63 billionYemen’s 2004 draft budget is up by YR 84 billion [Archives:2003/693/Business & Economy]

December 8 2003

Mahyoub Al-Kamaly
Yemen's draft 2004 budget now stands at an YR 84 billion increase over last year's, with a deficit of YR 63 billion.
Recently submitted to the parliament for committee debate, it gives development and services a priority.
It focuses on:
– improving security,
– giving more fiscal authority to local governments,
– reforming the school system and social services
– investing in both public and private sectors,
– attracting international attention, to get help with economic reforms in Yemen.

Deputy Premier and Minister of Finance Alawi Saleh al-Salami said general revenues the fiscal year 2004 amount to YR 681.1 billion, and spending is estimated at YR 744.6 billion, for a deficit of YR 63 billion.
This past year's revenues were estimated at YR 604 billion and the estimated total expenditures were YR 668 billion with a deficit estimated at about YR 64 billion, making the deficits of 2003 and 2004 virtually identical.
The 2002 budget draft gives YR 162 billion for education with an increase of YR 25.8 billion
Three society colleges would be built in the capital secretariat at the President Al Abdulla Saleh Center for Rehabilitation and Care of Orphanages, and also in the city of Seiyoun, Hadramout Governorate, and in the district of Sanhan, Governorate of Sana'a.
The draft budget has also determined funds for the health sector, which would get YR 35.5 billion, with an increase of YR 1.1 billion
The new budget has appropriated YR 189.4 billion for capitalist and investment expenditures, out of which a sum of YR 20.9 billion will used as contribution to shares of economic units' capital.
Security spending is estimated at YR 117 billion, while the ministry of interior would get YR 35.4 billion.
The draft of the state budget also includes YR 38.1 billion for interests and services duties, of which YR 10.7 billion would go for foreign interests and YR 18 billion for principle installments of foreign loans.