In March 2023, the OECD gathered 22 participants including Yemeni stakeholders from central level budgetary and fiscal institutions, as well as international organisations such as the World Bank, the European Union and the OECD. The objectives of the seminar were to address short-term budgetary challenges and build a fiscal framework supporting medium-term economic growth. International experts shared knowledge and experience with  representatives from the Ministry of Finance, the Ministry of Planning and International Cooperation, and the Central Bank   of   Yemen to provide   recommendations   on   actions   to   strengthen budgetary   and   fiscal institutions.  

The dialogues were organised in the context of the EU-OECD Project on Promoting Economic Resilience in Yemen, they took place in Aman, Jordan.

Yemen’s fiscal revenue has collapsed over recent years, challenging the government’s capacity to fund basic services and pay public sector wages. Vulnerability resulting from a high dependence on oil revenue was exacerbated by the conflict and instability in the global economy. Yemen  needs  to  restore  its  capacity  to  carry  out  basic  fiscal functions to foster long-term growth. Fiscal governance is key to restoring trust in public institutions and attract foreign aid. Ensuring accountability and transparency is key for resource mobilisation. Fiscal rules can raise confidence in the sustainability of public finances. 

During the event, a series of round tables and peer-learning training activities provided recommendations on actions to strengthen Yemen’s budgetary and fiscal capacities according to three levers:
- Enhance governance by designing systems, processes and tools that ensure the efficient and effective  management  of  budget  resources.
- Mobilise resources by taking a two-step approach, first restoring the capacity to raise revenue in the  short term, then gradually moving to broader reforms to build  stronger fiscal institutions.
- Design  fiscal  rules, such  as balanced  budget rules and expenditure ceilings,  to act against deficit bias and fiscal complacency, thereby bolstering investors’ confidence. 

The EU-OECD project “Promoting Economic Resilience in Yemen” is financed by the European Union and implemented by the Organisation for Economic Co-operation and Development (OECD). Starting in September 2020 and with a total duration of three years, it aims to strengthen the socio-economic resilience of Yemen in order to create viable conditions for economic growth and private sector development. The project is implemented in partnership with the Yemeni Ministry of Planning and International Cooperation.