Business

Government Decreases Oil Funds for 2014

By NY Staff
Ministry of Finance Reduced the state budget draft for the fiscal year 2014 generalized fund to 330.8 billion riyals (1.5 billion dollars) from 348.1 billion riyals (1.6 billion dollars) in 2013. The Yemen government reduced the oil derivatives fund for the 2014 year about 5 percent, due to the lack of financial resources and oil and gas installations Attacks.

Minister of Finance Sakhr Al Wajeeh during the financial statement presentation of public budgets projects in the House of Representatives declared the implementation postpone of some important economic, financial and administrative reform policy task such as; price reforms and terminate dual, delusional occupations in salary sheets (contributed tremendously in worsening general budget situation).
IMF and the World Bank are pressing on the Yemen government to make a limited reduction in energy fund to about 10 to 15 per year.
  The Minister of Finance confirmed that oil derivative fund expenses to exceed five times the investment expenditure, which increased domestic debt cost and oil derivative funds percentage to a total public expenditure reach during January (February 2013) – October (November 2013) about 16.7 and 20.3 % respectively “more than general budget expenses, which is one-third (37%) against development expenses, essential and basic public services level and efficiency degree for the community”.

    He pointed to the continuing state budget structure imbalance despite the improvement that has been achieved in increasing non-oil auto-income during the last two years. Still oil and gas income represents 56% of total public resources during the first 11 months of 2013.
    He also noted that “the largest imbalance was found in expenditure where current expenditures costs 91.5% of total other cost requirements, in accordance with the actual data implementation for the same period”. While investment during the same period expenditures not exceeding 3.8 % and transformative expenditures 4.5 percent compared to 5.4 and 4.1% respectively during the same period of 2012.

    Al Wajeeh announced that the primary actual data shows that investment expenditures during this period does not exceed 23.6 % of the total expenditure on domestic public debt profits and 19.3%  of oil derivatives fund costs, this means that the cost of domestic debt exceeding four times the investment expenditure.

    He expected national disposable nominal income stability in 2013, inflation rate increscent to 9 %, population growth rate increasing to 3%, with local production gross growth average rate to 5.7% expectations and actual rate of 5.4% in 2013, coupled with the declining of current surplus net of international inward transfers to 25% as the balance deficit declining average of production factors income net from outward will not exceed 4%.

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