Jordan's budget reports $82mn surplus in January

By bne IntelliNews April 19, 2016

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.

Related Articles

Erdogan warns Iraqi Kurds will lose “opportunities” if independence vote proceeds

Turkish President Recep Tayyip Erdogan has warned the Iraqi Kurds that it is in their interests to call off their planned September 25 independence referendum because it “may lead to a process that ... more

Russia’s Rosneft mulls Kurdistan-Turkey-Europe gas pipeline

Russia’s Rosneft is exploring the possibility of building a 30bn cubic metre (bcm) pipeline that would from 2020 deliver natural gas supplies from the Iraqi Kurdistan region to Turkey and ... more

‘Fruit juice moment’ indicates Iran making serious trade incursions in blockaded Qatar

An image of a ‘Produced in Iran’ fruit juice brand aboard a Qatar Airways flight might not appear at all exciting but to Iranians discussing the trade opportunities generated for the Islamic ... more

Dismiss