‘Favourable conditions’ boost budget by JD700 million — MP

AMMAN – Unexpected developments helped trim Jordan's public debt by nearly JD700 million by the end of 2014, the head of the Lower House Financial Committee, MP Yousef Qorneh, said Thursday. 

The lawmaker told The Jordan Times that falling global oil prices since June last year have saved the Treasury over JD300 million, adding that the state budget received a boost of around JD371 million in revenues. 

Elaborating on these, Qorneh said JD71 million was paid by telecom operator Orange Jordan for 4G licence, while a total of JD300 million was obtained as grants from a number of countries. 

"The government did not expect to receive these grants and put their value at zero when drafting the 2014 budget law," he added. 

The MP indicated that public debt was projected to exceed JD21 billion but the developments to state finances kept at around JD20 billion. 

Qorneh said he expects 2015 and 2016 to bring improvements to the fiscal situation due to projected higher revenues. 

The lawmaker indicated that the House committee recently met with the International Monetary Fund mission to Jordan to discuss the IMF-sponsored economic and financial reform programme. 

IMF officials are comfortable with the financial situation in Jordan and see the 2015 State Budget Law, recently endorsed by Parliament, in a positive light.   

"They even expect revenues to be higher," Qorneh said, pointing out that rumours about the IMF demanded the government to raise taxes on certain goods and services to generate greater revenues were baseless. 

The projected deficit in the JD8.096 billion budget is estimated at JD688 million in 2015, while public revenues –– including domestic and grants — are forecast to be around JD7.4 billion. 

Domestic revenues in the law are projected to reach JD6.28 billion compared with JD5.7 billion re-estimated in 2014.