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

Lebanon becomes European Bank for Reconstruction and Development shareholder

Lebanon has become the fifth member country from the Southern and Eastern Mediterranean (SEMED) region to join the European Bank for Reconstruction and Development (EBRD), becoming a shareholder with ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

US lifts laptop ban on Turkish Airlines flights as of July 5

Passengers boarding an early morning July 5 Turkish Airlines (THY) flight to John F Kennedy International Airport in New York were allowed to include laptops and electronic devices larger than a ... more

Dismiss