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.

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