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The decline in the riyal achieves 120 billion riyals in a cash surplus for the state budget in the first half of 2022

English - Sunday 21 August 2022 الساعة 03:46 pm

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Aden, NewsYemen, special:

During the first half of 2022, the state's general budget achieved a cash surplus that exceeded 120 billion riyals, driven by the depreciation of the riyal against the dollar, and the government's sale of crude oil in US dollars.

A government report revealed that the overall balance of the state’s general budget in the first half of 2022 showed a cash surplus of 120.8 billion riyals, compared to a cash deficit of 368.2 billion riyals in the first half of 2021.

The report "Economic and Monetary Developments for the First Half 2022" issued by the Central Bank of Yemen, Aden, said that the rise in crude oil export revenues contributed to the improvement of government financial indicators.

According to the report, revenues from crude oil exports increased during the first half of this year by $187.6 million, or 34%, to reach $739.3 million, compared to $551.7 million during the same period of the previous year.

In November 2021, the Central Bank of Aden created a foreign exchange auction mechanism, through which it sold the dollar above the threshold of 1000 riyals, which was criticized by economists for abandoning the central bank to its interests, about the suffering of the poor and protecting them from inflation and high prices.

Economists point out that the government is the only beneficiary of the devaluation of the local currency, the riyal, as its budget is based on the Yemeni riyal.  and revenue in dollars.  When the dollar is converted into domestic cash, the returns inflate and cover the budget deficit, and the deficit turns into a surplus.

According to the report, the percentage of revenue coverage of public expenditures amounted to 111% in the first half of 2022, compared to 42.3% in the first half of 2021.

The Central Bank report said that the state's public revenues rose during the first half of 2022 by 952.6 billion riyals, or 352.8 percent, to reach 1222.6 billion riyals.

While the ratio of public revenues to GDP reached 6.6% in the first half of 2022, compared to 2.4% in the same period in 2021.

The report indicated that public expenditures rose in the first half of 2022 by 463.6 billion riyals, or 72.7%, to record 1101.8 billion riyals.