Yemen - Public finance

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The US Central Intelligence Agency (CIA) estimates that in 2001 Yemen's central government took in revenues of approximately $3 billion and had expenditures of $3.1 billion. Overall, the government registered a deficit of approximately $100 million. External debt totaled $4.7 billion. Since unification, Yemen has run a budget deficit equivalent to 10–20% of GDP, financed primarily by bank credit. Yemen's decision to back Iraq in the Gulf War caused it to lose some $2 billion in development aid. The civil conflict in 1994 also exacerbated the need for external assistance and debt restructuring. The government estimated revenues would increase by 90% to YR 301 billion in 1997, while expenditures would rise 72.5% to YR 313 billion at that time. Increased oil revenues were expected to provide most of the increase in revenues.

The following table shows an itemized breakdown of government revenues and expenditures. The percentages were calculated from data reported by the International Monetary Fund. The dollar amounts (millions) are based on the CIA estimates provided above.


Tax revenue 38.6% 1,159
Non-tax revenue 59.4% 1,782
Capital revenue 0.5% 14
Grants 1.5% 45
EXPENDITURES 100.0% 3,100
General public services 22.0% 682
Defense 18.8% 582
Public order and safety 8.3% 258
Education 21.8% 676
Health 4.4% 136
Housing and community amenities 1.6% 51
Recreation, cultural, and religious affairs 2.8% 87
Economic affairs and services 11.5% 356
Interest payments 8.8% 273

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