Cabinet readies tighter state budget

AMMAN — The Cabinet on Sunday endorsed the draft state budget law for 2018, with a foreseen increase in the domestic revenues to cover 98.9 per cent compared with 92.5 in 2017.

According to the draft, the domestic revenues are estimated at JD8.496 billion, of which JD7.796 billion comes from domestic sources and JD700 million from  foreign grants, the Jordan News Agency, Petra, reported.  

The budget planners also see a slight expansion of 3.2 per cent in spending and an estimated deficit of JD688 million. In figures, public spending for next year is estimated to reach JD9.039 billion, up by JD572 million over public expenditure reestimated for 2017, including JD7.886 billion as current spending and JD1.153 as capital expenditures.

The latter covers several capital projects in partnership with the private sector.

The increase in current spending, which accounted for 6 per cent, is a result of settling dues of previous years and the routine annual increase in the salaries of public employees and the public debt service.  
The deficit before foreign financial assistance is expected to stand at JD1.243 billion, accounting for 1.8 per cent of GDP and shrinking to JD543 million with the grants.
The general budget is built to enhance the social security network by increasing social aid from JD702.4 million last year to JD788.8 million in 2018.

The law comes in line with the national programme for financial and structural reform and the implementation of the decentralisation programme through preparing capital budgets for governorates.

The Cabinet also endorsed the draft budget laws of governmental units, Petra said.
Revenues of these agencies are estimated to reach JD1.372 billion, while their spending is expected to be around JD1.187 billion, achieving a rare surplus when the National Electric Power Company (NEPCO) and the Water Authority of Jordan’s debts are excluded. The two utility companies’ revenues are estimated to stand at JD292 million, while their spending will be JD626 million with a deficit of JD334 million, compared with JD258 million in 2017, according to the report. 

The total deficit of the general budget and the governmental units’ budgets is estimated to stand at JD831 million or 2.8 per cent of the GDP, compared with JD1.035 billion or 3.6 per cent of the GDP last year.