Business

The Causes of Inflation

National Yemen

Mohammed al-Abssi

Mohammed al-Abssi

Inflation is not an act of nature like thunder or rain. It is the obvious result of a corrupt budget and it is requires that the government work to stop or reduce the amount of imported diesel, instead of the excuse of diesel smuggling. The government has to treat the disease, not the symptoms of the disease; the disease results from the corruption of fiscal policies such as:

The salaries and wages budget: rose from 601 billion in 2010 to 977 billion in 2014.

The benefits of debt budget: from 160 billion in 2010 to 415 billion in 2014

Ministry of Defense budget: a billion and a half dollars in 2010 to more than 2 billion in 2014

The Ministry of Interior Budget: from 99 billion in 2010 to 159 billion in 2014

The Ministry of Electricity Budget: from 35 billion in 2010 to 68 billion in 2014

Military Retirement Fund budget: from 52 billion 2010 to 73 billion in 2014,

Interior Retirement Fund budget: from 28 billion in 2010 to 54 billion in 2014,

The judicial power budget: from 16 billion in 2010to 27 billion in 2014

The Ministry of Works Budget: from 38 billion and 738 million in 2011, to 86 billion in 2014,

Office of the Ministry of Finance budget: from 4 billion and 171 million in 2011, to 6 billion in 2014

Office of the Ministry of Transport budget: From billion and 9 million in 2010 to 13 billion in 2014,

The House of Representatives budget: from 4 billion in 2011 to 7 billion and 200 million in 2014,

Tax Authority budget: from 7 billion and 258 million in 2011 to 12 billion in 2014,

The local administration budget: from 8 billion in 2011 to 17 billion Riyals in 2014,

The Ministry of Information Budget: from 12 billion in 2011 to 17 billion Riyals in 2014,

These are the reasons for the budget deficit, the crisis of oil derivatives, and the burdens of the inflation. Imagine if all the political parties or the institution of the presidency had shown responsibility and has allocated only a week to study the draft budget with economic and scientific methodology! Imagine if the parliament refused to pass the budget and insisted on modifying it and reducing the proportion of the deficit, which was then nearly 4 billion dollars!

Imagine that if all those who truly care about the people of the burden of Dosage price, which came out in protest marches were vigilant and their voices rose to warn Parliament of the adoption of the budget in January 2014.

If all that happened, do we suffer for 3 months without electricity and fuel?

Can the government and the President take the decision of Dosage?

Do we reach to these crises if we had respectable political elites?

Unfortunately we live our lives according to the rule of “what they decide we accept”, we do not look for the front and to the future. We do not evaluate things and look at them as reasons and results.

For those who were shocked by the dosage are you really surprised? I want to tell you that the dosage acknowledged in January and implemented now. Where were you from January till now?