Jordan's budget gap widens 83% y/y to USD 649mn in Jan-May 2013

By bne IntelliNews August 22, 2013

Jordan's state budget deficit widened 83% y/y to JOD 460mn (USD 649mn) in January-May 2013 on strong spending growth which offset a milder revenue rise, the central bank said in its monthly report. Revenue (including grants) rose 5.0% y/y to JOD 2.273bn and spending climbed 13.1% to JOD 2.733bn. Excluding grants, which totalled JOD 218.2mn over the period, budget income dropped 4.1% y/y to JOD 2.055bn.

Tax proceeds edged up 0.8% y/y to JOD 1.48bn in January-May whereas other revenue shrank 15% to JOD 563mn.

Current spending rose 9% y/y to JOD 2.463bn over the period on higher military wages and social contributions. Capital spending jumped 79% to JOD 270.3mn 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. Foreign grants fell to a decade-low of 1.5% of GDP in 2012 from 5.9% in 2011, according to S&P.

Related Articles

Ankara and Tehran join wave of anger directed at Trump’s recognition of Jerusalem as Israel’s capital

US President Donald Trump's December 6 announcement that his administration has decided to unilaterally recognise Jerusalem as Israel's capital was described as “against international law” by ... more

Islamic State is finished declares Iran's President Rouhani

Iranian President Hassan Rouhani on November 21 declared the end of the so-called Islamic State militant and terrorist group following decisive battles in Iraq and Syria. Stating that he wished to ... more

Turkey the loser as Baghdad rewards Iran with control of Kurdish oil exports

Iran is taking control of oil exports from Iraqi Kurdistan's giant Kirkuk field with Baghdad authorising the move as a reward for the Iranians' help in quelling the Kurds' late September push for ... more

Dismiss