SANAA Dec 26 Yemen's cabinet approved a draft
budget for 2014 that would raise state spending about 4 percent
to 2.88 trillion rials ($13.4 billion) from the original 2013
budget plan, state news agency SABA reported.
The impoverished Arabian Peninsula nation came close to
economic collapse after a popular uprising in 2011 forced former
president Ali Abdullah Saleh to step down.
Estimated revenue for 2014 is around 2.20 trillion rials, up
about 6 percent from the 2013 budget plan, SABA reported late on
Wednesday without giving details of revenue sources. Finance
minister Sakhr al-Wajeeh told the agency that next year the
government would work harder to generate revenue from the
non-oil sector, taxes and customs duties.
The 2014 draft budget, which still needs approval by
parliament, projects a deficit of around 679 billion rials, SABA
said. That compares with a deficit of 682 billion rials
envisaged in the original 2013 budget.
Yemen's finances are still being strained by frequent
attacks on oil pipelines by disgruntled tribesmen. Crude exports
provide up to 70 percent of government budget income.
Economic recovery in Yemen, the second-poorest Arab state
after Mauritania where 40 percent of the population lives on
less than $2 a day, has accelerated this year. The International
Monetary Fund forecasts growth of 6.0 percent in 2013 against
2.4 percent last year; in 2011, when unrest gripped the country,
the economy shrank 12.7 percent.