Rising proceeds helped Jordan’s state budget record a JOD58.2mn ($82mn) surplus in January this year, well expanding from a mere JOD8mn surplus in January 2015, preliminary data from the finance ministry showed. Jordan’s budget parameters are usually strong in the first two months of the year mainly for administrative factors before swinging into deficits later in the year.

Falling foreign grants and thus total state income widened Jordan’s budget deficit by 59% to JOD929mn ($1.31bn) in 2015, equalling to 3.4% of the estimated full-year GDP.

Excluding grants, the budget reported a JOD22.7mn surplus in January, reversing a JOD40mn gap a year earlier.

Foreign grants sank 25% y/y to JOD36mn in January.

Total budget revenue grew 11.4% y/y to JOD546.3mn in January, well overshooting a mild 1.1% annual rise in spending to JOD488mn.

Domestic budget revenue climbed 15.3% y/y to JOD511mn, lifted by higher tax collection mainly on strong local and tourism demand that continues to support services income, customs duties and VAT proceeds. Income profit tax revenue expanded 15% y/y in January and those from international trade grew 4.6%. The good news is that the constructions sector rebounded in 2016 with related tax collected growing 7% y/y in January.

Current spending grew 3.3% y/y to JOD483mn in January and capital spending dropped 66% on austerity measures in line with the IMF requirements and high base effects.