VZCZCXYZ0004
RR RUEHWEB

DE RUEHYN #0550 0891302
ZNR UUUUU ZZH
R 301302Z MAR 09
FM AMEMBASSY SANAA
TO RUEHC/SECSTATE WASHDC 1513
INFO RUEATRS/DEPT OF TREASURY WASHDC

UNCLAS SANAA 000550 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR EEB/IFD/OMA JULIA JACOBY 
DEPT FOR NEA/ARP ANDREW MACDONALD 
 
E.O. 12958: N/A 
TAGS: EAID ECON PREL EFIN YM
SUBJECT: YEMEN BUDGET TRANSPARENCY FOR SECTION 7088(C) 
COMPLIANCE 
 
REF: STATE 28885 
 
¶1. (U) The ROYG is currently receiving U.S. bilateral 
assistance using FY 09 funds, including development, 
counterterrorism, and military assistance.  The non-military 
portion of the annual expenditures of the central government 
is publicly available on the Ministry of Finance's website 
(www.mof.gov.ye/arabic/budget2009.php) and in print through 
the Ministry of Finance and the Central Bank of Yemen (CBY). 
Government revenues are detailed in the CBY's annual report 
and are divided into oil and gas revenues and non-oil 
revenues. 
 
¶2. (SBU) It is difficult to assess the accuracy of ROYG 
reports on government revenues and expenditures, due to a 
lack of independent analytical organizations and the absence 
of any freedom of information laws.  The lack of 
record-keeping among many Yemeni businessowners, coupled with 
widespread corruption in the oil sector and the Tax and 
Customs Authorities, makes accurate budget information hard 
to come by for the government itself.  World Bank 
representatives in Yemen tell us that different ROYG 
ministries and organizations publish widely varying budget 
figures and there is no information on how data, especially 
revenue figures, is derived. 
 
COMMENT 
------- 
 
¶3. (SBU) Post believes that Yemen is in compliance with 
Section 7088(c) of the Department of State Foreign Operations 
and Related Programs Appropriations Act (SFOAA) FOAA, but 
would benefit greatly from capacity-building assistance 
targeting the Central Statistical Organization (CSO), the Tax 
Authority, and the Ministry of Finance.  Training ROYG 
accountants, statisticians, and economists in best practices 
would go a long way in improving survey methods, budget 
analysis, and transparency.  End Comment. 
SECHE