Symposium: Absence of budget planning causes increased disorder and poverty [Archives:2006/921/Business & Economy]
By: Mahyoub Al-Kamali
The state's general budget was blamed as being the major cause plucking the living from the mouths of the poor. This was said because the budgets do not draw up successful remedies and solutions to citizens' problems nor create job opportunities by building strategic projects to provide a multitude of opportunities for tens of thousands of unemployed roaming the streets of the capital and other cities.
Annas Establishment for Press recently held a symposium in Sana'a on state budgets and their role in alleviating poverty and unemployment. A group of Yemeni politicians and economists attended the symposium, discussing aspects of the disorders and floundering projects at this stage, the burden of indebtedness and ways to emerge from the bottleneck of citizens' living crises. The essential question was whether government budgets resolve what Yemen's economy suffers and the public's living conditions.
In this regard, Nasserite Unionist Organization Secretary-General Sultan Al-Atwani stressed that citizens' suffering increases with every newly approved budget, wondering about increased prices usually accompanying increased oil quantities. He added that drawing up the budget should be based on revenues increase to create a development jump, added to what was allocated already.
Al-Atwani pointed out that 600 projects are proposed by direct orders and only 25 percent of project budgets are spent on them, whereas 75 percent of the allotted sums go in favor of influential personalities. He considers what is occurring in Yemen as organized corruption to plunder the country's riches. Those in charge of the country's administration play the role of liquidating the wealth in coming years and then leave. He said, “The [budget] plan represents a yearly program to measure the extent of what is achieved with regard to citizens living in a better way, but regretfully, we have not seen this.”
Al-Atwani also touched on government rhetoric when signing border agreements with neighboring countries, in talking of reducing defense and security budgets while surprising citizens with increased defense and security allocations, questioning the whereabouts of those allocations and about the existence of security.
In response to a question by the symposium manager about the source of funds the ruling party spends on its election campaigns, Al-Atwani replied that such funds come from two sources: ruling party-dominated institution budgets and government-proposed appropriations. He affirmed that supplementary appropriations are not spent on development as much as for confronting the opposition, adding, “Additional appropriation is additional revenues loss.”
Economic expert Dr. Mohammed Al-Sabri justified additional appropriations, blaming the opposition for concentrating on the general budget and forgetting economic unit budgets that reach general budget's level. He attributed existing corruption to spending inefficiency and ruled out its being intentional. Member of Parliament Sakhr objected to this supposition, saying, “The present corruption is intentional and premeditated.”
Al-Sabri cited spending inefficiency by giving the example of an institution that claimed it bought a bed for $2,000 while the real price was $600. He demanded the government improve its purchasing situation. He deemed weapons purchasing as a demand and military salaries as social care, describing the budget as “unplanned,” evidenced by its failures.
Al-Wafi, deputy head of the Islah party economic office, agreed with Al-Sabri regarding the rise in military salaries but disagreed about weapons purchasing, indicating the existence of tax failures and legal negligence toward smuggling, saying, “The government is lenient. There must be some fierceness.”
Al-Wafi said 2005 actual state revenues were approximately one trillion Riyals, clarifying that government-stated oil decreases are nearly unmentionable and that it can make up for them with new oil discoveries. He considers government talk of sales tax not enough, confirming that the law was not enacted. Also, he said the present budget is used to benefit some people and completely against developmental goals.
According to Al-Wafi, 40 percent of the budget goes to defense and security. Sakhr said the budget does not reflect actual implications, noting that it was issued by law but violated more than other laws. Also, final budget accounts were not implemented, especially concerning investment.
Sakhr added, “Supplementary appropriations are needed when there are emergency requirements, while we here demand them to devour increased revenues.” Sakhr denied knowing the number of state employees, explaining, “Fifty million dollars was spent restructuring civil service; however, double jobs were not abolished and we do not know anything concerning the employees.”
Writer Abdulrahim Muhsin described the security authority as “chaotic,” considering that the core of the budget is spent on it. He said, “Knowledge about the budget is restricted and has not turned into public opinion because there is no deterrent and the opposition does not have serious criticisms to it.”
MP Mohammed Saleh spoke about the existence of two versions of the budget: a published one that is nominal and a 'real' one that is implemented. He said the same things said about the 2005 budget can be repeated about the 2006 budget, meaning it has not been implemented and will be repeated in the 2007 budget. He affirmed, “The budget should have been a translation of the five-year plan the state adopted,” describing the supplementary appropriation as a “scandal” and regretting that the state does not stick to what is presented to Parliament.
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