Business | Economy
Yemeni budget cuts criticised
Politicians criticised the Yemeni government for reducing the 2009 state budget by 50 per cent to counter the drop in oil revenues, which make up over 70 per cent of the budget.
- By Nasser Arrabyee, Correspondent
- Published: 23:32 December 27, 2008
Sana'a: Politicians criticised the Yemeni government for reducing the 2009 state budget by 50 per cent to counter the drop in oil revenues, which make up over 70 per cent of the budget.
The 2009 budget revenues were estimated at $7.7 billion (Dh28.28 billion) on the basis that $55 would be the price per barrel of oil.
Expenditures were estimated at $9.8 billion.
Critics say the government should have developed non-oil resources to avoid being affected by the oil price drop.
"If the state adopted genuine development in other sectors, it would not have had to resort to reducing the public budget of the development projects," said Saqr Al Wajeeh, an independent MP.
"As a result of the total dependence on oil, the drop in oil prices may lead to the complete collapse of everything, the government did not work on diversifying its resources of income."
The government used a provision in the law that authorises them to modify the budget if oil prices drop.
Yemen produces 340,000 barrels of oil per day, according to government statistics.
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