Jordan's budget gap narrows 19% y/y in January-July

By bne IntelliNews September 29, 2015

Rising revenue and falling spending cut Jordan’s budget gap by 19.4% y/y to JOD374mn ($527mn) in the first seven months of the year, preliminary data from the finance ministry showed.

Excluding grants, the budget gap also narrowed to JOD682mn in January-July from JOD792mn a year earlier.

Jordan’s 2015 state budget forecasts a JOD688mn net deficit after foreign grants. The expected budget gap will equal to 2.5% of the forecast GDP in 2015.

The Jordanian government has signed official agreements for a total of $996mn in foreign aid up to end-May. Jordan traditionally relies on foreign grants to help address its chronic fiscal deficit.

Earlier this week, Jordan and the US signed four grant agreements worth $430mn, of which $231.4mn will go to the state budget before end-2015. The money will help further support Jordan’s fiscal balance this year

Foreign grants reached JOD308mn at end-July, down from JOD330mn the year before.

Total budget revenue edged up 0.7% y/y to JOD3.84bn at end-July whereas spending fell 1.4% y/y to JOD4.22bn. Domestic budget income grew 1.5% y/y to JOD3.54bn over the period due to higher tax collection on strong local and tourism demand mainly in Q3. Tax proceeds increased 4.4% y/y to JOD2.42bn in January-July (66% of total domestic income).

Tax on goods and services grew 1.1% y/y and those on international trade edged up 0.5%. Income and profit tax climbed 16.3% y/y over the period.

Property tax, however, remained in the red, falling 13.4% y/y in January-July mainly du high base effects.

Current spending dropped 1.8% y/y to JOD3.74bn (88% of the total) at end-July whereas capital spending rose 2.4% y/y to JOD472mn.

 

Related Articles

Trump warns US pullout from "horrible" Iran nuclear deal might still be ahead

US President Donald Trump on October 16 warned that the termination of the Iran nuclear deal is still a clear possibility even though he ... more

Pentagon chief suggests staying in Iran nuclear deal is in US interests

US Defence Secretary Jim Mattis on October 3 told the Senate Armed Services Committee that it currently appears to be in the strategic interest of Washington to remain in the Iran nuclear deal. ... more

Iran will in six years accept stricter nuclear inspections if US behaves, says foreign minister

Iran’s foreign minister has said the country is willing to formally accept a tougher nuclear inspection regime in six years. However, Mohammad Javad Zarif continued to rule out any renegotiation of ... more

Dismiss