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|Prompted by Collapse of Oil Prices; Cabinet Cuts 50 Percent of 2009 Budget|
( YEMEN POST STAFF )
Article Date: December 22, 2008
Cabinet approved cutting 50 percent of 2009 budget allocations which mounted to YR 1.5 trillion. This decision was justified by the recent drop in oil prices especially when it fell dramatically to nearly $30, instead of the $148 it reached last July.
An informed source noted that this decision does not apply to salaries and wages since any cuts in the item of salaries will directly affect the lives of citizens.
As early as November, the Cabinet held an extraordinary session to endorse the country’s budget at both central and decentralized levels. It included independent and annexed budget drafts, the special funds, and the economic units for the year 2009.
The drop of oil prices resulted in a financial deficit estimated to be YR 532 billion, after it was YR 427 million and at 27 percent. The deficit was estimated in the budget referred to parliament to be 7.37 percent.
Meanwhile, Yemeni government announced last week reducing public expenditures for the fiscal year 2009 to avoid financial burdens, according to a plan proposed by Finance Minister Noman Al-Suhaibi.The government also approved cutting the number of diplomats working in Yemeni embassies abroad. It decided as well to stop buying transport means and furniture and other equipments only for new buildings and institutions.