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

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