EconomyNews

Yemen Prepares 2026 Budget Amid Severe Financial Crisis

Yemen Monitor / Newsroom:

The Yemeni government has begun preparing the 2026 state budget in Aden, its interim capital. This comes as the country faces unprecedented financial challenges due to declining revenues and increasing pressure on public spending.

Hani Wahab, Deputy Minister of Finance and head of the technical budget committee, stated that allocating resources has become more complex. He noted that the current situation requires strict measures to mobilize and grow revenues, enabling the state to meet its basic obligations to citizens.

The committee’s meeting focused on the general features of the budget, including setting fiscal policies, defining national spending priorities, and discussing the criteria for the upcoming budget’s overall framework.

The committee also reviewed major challenges to public finance, such as severe resource constraints and high funding needs. The chronic budget deficit has worsened since Houthi attacks halted oil exports, while demands for essential services and public sector salaries continue to rise.

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