Budget 2012 passed
The House of Representatives has finally passed the 2012 state budget which will stand at YR 2.1 trillion (£7.89 billion; $12.6 billion) an increase of about 50% on the previous budget and with a deficit expected of YR 0.5 trillion.
The agreement of the budget came with a long list of recommendations especially in the areas of social support and government subsidies to help families affected by the recent troubles.
A number of the key recommendations include:
• Production of a plan of economic, financial and social projects
• Strengthening the role of the private sector to allow them to lead economic growth and development
• Better utilisation of existing funds and grants
• Take effective steps to promote good governance, transparency, accountability and the fighting of corruption especially smuggling of oil derivatives, tax and customs evasion
• Strengthen the role and tools of monetary policy to enhance confidence of the business and investment community
• Raise the efficiency of the banking system
• Expedite a review of state salaries, pay ‘back wages’ and identify ‘phantom’ jobs and put in place proper recruitment procedures
• Place electricity and water projects as high priority
• Develop own resources in the non-oil sectors especially fishing, minerals, agriculture and tourism
• Submit draft law regulating the exchange market
• Adoption of a single body to be called the High Authority of Food and Drug Administration
• Board of Finance to study the data on quantities and support of oil derivatives consumed locally and report back by June 2012
• Allocate sufficient funds to local authorities to carry out their tasks.
The budget is a sign that, in government at least, there is a desire to normalise administrative procedures and get the country working once more.
Meanwhile, the IMF has approved a loan of $93.7 million, the President has told the air force commander, Mohamed Saleh al-Ahmar, who was dismissed last week to give up his position within 48 hours or face a court martial and has refused former president Ali Abdullah Saleh a meeting to discuss recent presidential decrees.