Jordan's budget gap shrinks 26% y/y to USD 432mn in Jan-June 2013 on higher grants

By bne IntelliNews August 23, 2013

Jordan's state budget deficit narrowed 26% y/y to JOD 310mn (USD 432mn) in the first half of 2013 helped by higher foreign grants receivables that boosted overall revenue, daily Ad-doustour reported on August 23 citing finance ministry data. Revenue (including grants) climbed 19% y/y to JOD 2.98bn and spending jumped 13% to JOD 3.29bn. Excluding grants, the budget gap widened to JOD 742mn from JOD 442mn the year before.

Foreign grants jumped to JOD 433.2mn in January-June from just JOD 25.2mn a year earlier.

Tax proceeds rose 6.2% y/y over the period also helping lift state income. Current spending rose 9% y/y in H1 on higher military wages and social contributions. Capital spending jumped 58% mainly due to a low prior-year base.

Jordan’s budget deficit will shrink to 4.8% of GDP in 2013 from 8.2% the year before, the IMF forecasts. Higher grants receivables, austerity measures and falling energy imports will help Jordan improve its external balances in 2013. Jordan expects to get JOD 850mn (USD 1.2bn) worth of foreign grants in 2013.

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