Unpaid salaries in Houthis-held areas accumulate to YR3 trillion

Unpaid salaries in Houthis-held areas accumulate to YR3 trillion

Alsahwa Net- The unpaid monthly wages to the public servants in the Houthis-controlled areas reached around YR3.150 trillion ($5.3 billion) since August 2016 until March 2020, according to records of the public state budget.

The Houthis halted in August 2016 monthly payments of 1.250 million public servants which left about 25 percent of the Yemeni households with no income.

Economists say that the decision aggravated the humanitarian crisis and brought new rows to the poverty line.

They say that the Houthis remain in debt of the unpaid salaries to the public servants as they collect taxes and service fees from citizens and businessmen.

The emergency assessment of food security and nutrition prepared by a group of economic experts said that monthly salaries represent an added value for landlords and shop owners.

Suspension of the monthly salaries had negatively affected the aggregate demand, deepened the economic contraction and increased the unemployment rate.

The demand for goods and services decreased significantly when 1.250 million public workers lost their incomes.

The state workers account 36 percent of the consumer demand for goods and service in the local market, according the Ministry of Finance.

The problem has also lowered access to goods and services by household members of the public workers estimated at 6.9 million people among them 3.3 million children, according to the Ministry of Public Service.

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