2009 Public budget seeks to improve economic, social stability

Minister of Finance Noman al-Suhaibi

“Significant progress has been made in implementing the National Reform Agenda, particularly in the promotion of an investment environment which will encourage economic growth as well as aid in achieving the objectives of the Third Five-Year Plan and the Millennium Development Goals”, said Minister of Finance Noman al-Suhaibi in parliament last week during the presentation of the public budget for the 2009 fiscal year. The budget must now be approved by parliament.

With the 2009 budget, the Minister of Finance indicated the government would continue implementing the platform of President Ali Abdullah Saleh by funding several key policies and programs. The policies are aimed at promoting transparency and good governance through the continuation of the implementation of a financial management reform strategy, amendments to financial and economic laws, enhancing efforts to combat corruption and strengthening the system of local authority.

The 2009 budget’s projects aim to improve economic and social stability, and consolidate the country’s development gains, which have been made in various areas of the national economy. More specifically, the goals include raising standards of living, fighting poverty, and enhancing the investment climate- all in a way which meets national  security requirements and social peace, al-Suhaibi said.

He confirmed during implementation of the 2009 budget, the government is eager to strengthen it’s partnership with the private sector, particularly in the implementation of the industrial strategy as well as the establishment of industrial zones in a number of governorates.

The budget will work to modernize and develop human resource management systems and provide the necessary requirements for decentralizing the country’s administration. It will also continue the implementation of the government’s efforts on strategic road projects, research new sources of sustainable public income, in addition to strengthening efforts to combat poverty and promoting social safety net programs.

The draft of the public budget for the fiscal year 2009 estimated general availaible resources at YR 1.5 trillion (1,537,168,000,000). The general estimated expenses are YR1.9 trillion (1,963,995,000,000) in the state draft budget for next year.

Current Expenditures are estimated at YR1.4 trillion. Capital and investment expenditures are estimated at about YR 529.100 billion (529,100,000,000). The Cabinet referred the budget draft to parliament for the completion of constitutional procedures and approval on both a central and decentralized level including independent and annexed budget drafts, the special funds, and economic units.

The net total deficit for the general budget in 2009 will be 7.37 percent of the total gross domestic product.  The Cabinet recommended the net deficit should not exceed at implementation the determined conditions for economic reforms. 

Regarding the independent annexes and special funds for 2009, the draft law rated the sources and usage of the unified accounting system affiliates at YR 347,512,638 billion. The governmentís account system affiliate units are rated at 32 148 408 000. 

The Minister of Finance reviewed the basis of the general budget draft, which depended on a substantial estimation of revenues. In addition, there was heavy dependence on the reconsideration of the financial and administrative systems to secure expenditure rationalization, increasing revenues and financial behavior monitoring in conformity with the comprehensive reform program objectives. It also took into consideration the observation of the investment program, local authority decentralization, and financial and administrative support. 

The cabinet focused on the entry of recourses and expenditure, curtailing new projects and giving priority to financing already implemented projects. It also gave special attention to socially feasible project with large financial returns, which contribute to adding net revenues to the overall and partial levels.

The budget ensured the continuation of the implementation of the National Wage Strategy, focusing on the relationship between production and wages, and cleaning the pay sheet of duplicated and fallacious jobs. 

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