Central Bank Reports Budget Surplus Amidst Government Deficit in Salaries and Services

18 hours ago
Central Bank Reports Budget Surplus Amidst Government Deficit in Salaries and Services

Contradictory fiscal reports have emerged, with the Central Bank in Aden announcing a surplus in the general budget while the government struggles to meet obligations for salaries and essential services in liberated areas.


According to monthly reports issued by the Central Bank of Yemen, a cash surplus was recorded in the general budget between revenue and expenditure for the first four months of 2026. The bank's report on monetary and financial developments for April 2026 indicated a cash surplus of 32.6 billion Yemeni Rials, with public revenues reaching 680.8 billion Rials and public expenditures amounting to approximately 648.2 billion Rials. This marks the fourth consecutive monthly cash surplus, following surpluses of 51 billion Rials in March, 95.8 billion Rials in February, and 52.6 billion Rials in January 2026.


However, the Central Bank reports do not provide details on the specific components of public expenditure or the sources of public revenue. It remains unclear whether the reported revenues are solely collected funds or if they include Saudi financial support allocated to the general budget. Saudi Arabia provided 1.3 billion Saudi Rials (approximately $346.59 million) in early March to cover the Yemeni government's budget deficit, specifically for employee salaries.


The Central Bank's claims of a fiscal surplus contrast sharply with the government's inability to fulfill its essential commitments, particularly regarding salaries and public services. The government has yet to disburse March salaries for civil servants, and military and security personnel in liberated areas are entering another month without receiving their pay.


Furthermore, the liberated areas, especially coastal cities, are experiencing a worsening electricity crisis. With rising temperatures, daily power outage durations have increased, reaching up to 18 hours in some cities, including the capital, Aden. Protests have recently erupted in Aden and cities in Hadramaut against the deteriorating electricity service and the government's persistent failure to provide lasting solutions to this issue, which has persisted for over 11 years.


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