Defense Budget
Yemen’s defense spending has historically been one of the government’s three largest expenditures and is expected to remain high as a result of the reinstatement of conscription and security threats posed by terrorism and tribal conflict. The defense budget increased from US$540 million in 2001 to an estimated US$2 billion–US$2.1 billion in 2006, to which it is probably $3.5 billion by 2012. According to the U.S. government, the 2006 budget represents about 6 percent of gross domestic product.
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