Yemen Socio-Economic Update, Issue 12 - March 2016 [EN/AR]
Decline in total state’s public revenues by 53.7% due to the suspension of the production and exports of crude oil and liquefed natural gas (LNG), suspension of donor support to state’s budget and reduction in tax revenues.
Decline in total state’s public expenditures by 25% as a result of reducing most of the public expenditure items, which include freezing the capital expenditures, suspending the social welfare cash assistance disbursement and reducing the operational costs of basic service facilities.
The public budget’s net defcit reached 15.4% of Gross Domestic Product (GDP), exceeding the safe limits. Ɣ Direct borrowing from the Central Bank of Yemen (CBY) is the most important source to fnance the budget defcit by 84%.
Increase in domestic public debt from $14.8 billion in 2014 to $19 billion in 2015, and the debt burden has reached an alarming level. Ɣ The public budget’s fnancing gap is estimated at $5.8 billion in 2016 (without reconstruction needs).