President Hadi chairs meeting of cabinet and Supreme Security - TopicsExpress

President Hadi chairs meeting of cabinet and Supreme Security Committee August 6, 2014 -SANAA President Abdrabuh Mansour Hadi chaired on Wednesday a joint meeting of the cabinet and the Supreme Security Committee. The President during the meeting stressed the importance of working seriously in the new stage of comprehensive reforms in several fields, which requires more efforts to tackle problems and disturbance in the country. We are bearing the responsibilities before Yemeni people and we have to be responsible in our posts, the President said. Hadi noted that the economic situation in the country has reached a critical stage and threatening to collapse. He explained that the government has different and various commitments, saying the budget of the state for 2013 has burdened YR billion 655 for a fuel subsidy with a deficit of YR 630 billion due to the breakdown of investment program and the weakness of sustainability of public finances due to continued and sharp decline of the governments share of crude oil production with an increase in the public spends which aggravated the states deficit because the crude revenue provides up to 70 percent of government budget income. He pointed out that the sharp decline in revenues cause an increase in the domestic debt estimated at YR one trillion and 39 billion and amounted to 36% of GDP, this thing hinders the government to be able to face more commitments to entrepreneurs and others, which estimates of YR 215 billion. Also there are several repercussions besides what has been mentioned above, including the breakdown of donors to pay their commitments to entrepreneurs for projects funded by them due to the disability of the government to pay its share which estates to 10 to 20 per cent, the President stated. Hadi said that the government has subsidized the fuel since 2000- 2014 with YR five trillion (more than $23 billion) and that thing led to deficit in the public state. The government had no choice except through the path of implementing the comprehensive economic, financial and administrative reforms in order to control the states deficit, the President said.