Budget

•The draft law will be sent to the National Assembly in the coming days and on its constitutional date

• The draft law allocates capital spending (1,469) million dinars
• The draft law allocates allocations for the implementation of major projects as a translation of the vision of economic modernization
• Local revenue coverage of current expenditures increased to 86% compared to 81.6% in 2024.
• The percentage of grants covering total expenditures decreased to 5.9% and decreased in relation to local revenues, which enhances the self-reliance approach.

Amman, November 21 (Petra) – The Council of Ministers, headed by Prime Minister Dr. Jaafar Hassan, approved the draft general budget law for the fiscal year 2025. In preparation for referring it to the National Assembly in the coming days and within the time frame specified by the Jordanian Constitution.

The draft budget law for next year is based on realistic assumptions and is consistent with the requirements for implementing the economic modernization vision by allocating the necessary financial allocations to begin implementing major projects. Such as the National Water Transport Project, and the railway linking the port of Aqaba to the mining areas of Al-Shidiya and Ghor Al-Safi.

The draft law comes in light of exceptional regional circumstances and challenges that put pressure on economic activity, investment climates, and tourism activity, which means that achieving the development vision sought in the draft budget law will require diligent government efforts to provide sufficient spending to implement major development and strategic projects, attract foreign investment, and reduce external debt service growth rates. For the coming years.

The draft law estimated total public expenditures at approximately (12,511) million dinars, including current expenditures at approximately (11,042) million dinars, and capital expenditures at approximately (1,469) million dinars, an increase of 16.5% from their re-estimated level for the year 2024. This is to cover financing major projects, building new hospitals and schools, and maintaining existing hospitals and schools.

The draft law also reduces the primary deficit in 2025 to 2% of GDP, compared to 2.9% in 2024.
The draft budget law also comes in line with the requirements for implementing the public sector modernization road map by allocating the necessary allocations to move forward with its executive program and enforcing the instructions that were recently issued for jobs in the public sector, in addition to allocating sufficient allocations under the salaries and wages item to cover the costs of creating and filling the vacancies intended to be created. .

The budget’s realism is also embodied in its consideration of the requirements for enhancing the national economy’s ability to grow and provide job opportunities, as well as taking into account regional conditions that will hopefully witness a breakthrough that will improve macroeconomic indicators.
On this basis, the draft budget law estimated public revenues at approximately (10,233) million dinars, of which (9,498) million dinars are local revenues and (734) million dinars are external grants. Therefore, the draft budget set realistic estimates of revenues in a way that contributes to better management of the development process. .