Despite oil rise Yemen’s budget will still show deficit
Yemeni economists have expressed surprise that, despite the dramatic increase in the price of crude oil, the country’s budget for 2001 is forecast to run a deficit of 14.8 billion Yemenite rials (YR), reported the Yemen Times.
According to the Yemeni government, total expenditure in 2001 budget will reach YR 501.9 billion, which is YR79.6 billion more than in 2000. Revenues will rise to YR487.8 billion, marking an increase of YR98.9 billion from 2000.
What this means is that, despite the global increase in oil prices, the deficit of the general budget of this year until the end of 2001 will not reach the target level suggested by the IMF, which is 3 percent of GDP.
Economists were generally disappointed, especially in light of Yemeni government’s sated intention of reducing expenditure and the increase in oil prices. – (Albawaba-MEBG)