Yemen's Parliament failed on Sunday to approve the state budget for fiscal year 2012 because of the continuous rows by the GPC, the former ruling party, and the JMP, the main opposition coalition, which leads the current government.
 

Disagreements between the parties started since debating the budget by the Cabinet and they have been deepening and delaying the debate in Parliament further.

The rows raged during the sitting with the leader of the GPC bloc, refusing to debate the budget because of the absence of Finance Minister, Sakhr al-Wajeeh. Al-Wajeeh, who is currently on a state visit abroad, authorized his deputy and other ministers to attend on behalf of him, but the GPC members insist on his attendance.

For their parts, MPs from the JMP accused the GPC of attempts to hinder passing the budget and referring it to President, arguing that President, Hadi, must be the only and final reference in case the parties disagreed on a public matter.

The GPC and the JMP signed a power transfer deal, which was brokered by the GCC and backed by the US in November, under which they formed a power-sharing government, led by the opposition. Under the deal, Hadi decides on topics if these parties can't agree on them.

MPs from both sides traded accusations, in a sign of the deepening disagreements inside the power-sharing government.

In March, the government approved over YR2.1 trillion in the budget for 2012, up from almost YR1.5 trillion in 2011 and 2010. The deficit was estimated at more than YR561 billion.