Business

Government Claims Annual Surplus After Raising Subsidies on Oil Derivatives

National Yemen

Oil facilities

BY NY Staff

Arab newspapers have published a detailed report titled The Government Took More Than It Gave from Oil Derivatives Cost, based on financial statements and official bodies. The report notes that the annual surplus would be $1.2 trillio­n.

According to a governmental report issued by the Ministry of Finance, the percentage of the total spending by the government during the past ten years was about 5.2 trillion riyals dollars to support the oil derivatives, while the report confirmed that the total spent in 2014 is amounting to 656.3 billion riyals, which forms 20% of the total public expenditure of the state budget. This spending on supporting derivatives took the economy to a critical level as it resulted in a deficit of $1,067 trillion riyals, or about $5 billion, and 13% of GDP.

Newspapers said that it is clear that the government has provided 656 billion riyals of support for the derivatives since last January to June. According to private information, it has put forward options for the raise of subsidies, including a gradual raise and raising the price to only 3,500 riyals. They noted that the government was surprised by the decision to raise oil derivatives to 4,000 riyals.

Depending on the ratio of the declared support of the oil derivatives, which was provided by the government, it will be found that it will achieve a surplus each year by about 1.1 trillion riyals on the grounds that what is presented in seven months is 656 billion riyals.

It is noted that there was a gap after the announcement of the economic reforms between the proportion of funds that will be supplied to the state treasury and the money that will go to economic reforms. The percentage of what will go to 250,000 cases of social security out of 656 billion remains unknown.

The beneficiary of the raised subsidies is corrupt people and the mafia who are looting public money while the citizen’s benefit does not exceed 5%.