Government Endorses State Budget Law For 2025
Date
11/21/2024 2:38:04 PM
(MENAFN- Jordan Times)
AMMAN - The government on Thursday endorsed the 2025 draft state budget law and will refer it to the Lower House for deliberation in the coming few days.
The draft law was endorsed during a Cabinet session chaired by Prime Minister Jafar Hassan.
The draft budget estimates total public expenditures at JD 12.511 billion, including JD 11.042 billion in current expenditures and JD 1.469 billion in capital expenditures, representing a 16.5 per cent increase from 2024.
This increase aims to fund major projects, build new hospitals and schools, and maintain existing ones, the government said in a statement.
The draft law also reduces the primary deficit for 2025 to 2 per cent of GDP, down from 2.9 per cent in 2024. "It aligns with the requirements for implementing the Public Sector Modernisation Roadmap by allocating necessary funds to advance its executive program."
The draft budget estimates total public revenues at JD 10.233 billion, including JD 9.498 billion in domestic revenues and JD 734 million in foreign grants.
The statement said that the 2024 state budget law "adopts realistic revenue estimates to enhance the management of development processes."
"The draft also shows an improvement in the coverage of current expenditures by domestic revenues, increasing to 86 per cent compared to 81.6 per cent in the 2024 figures."
The share of foreign grants in total expenditures decreased to 5.9 per cent, down from 6.3 per cent in 2024. "This reflects Jordan's cumulative success in advancing self-reliance."
The share of foreign grants in total domestic revenues has gradually declined since 2004 due to Jordan's self-reliance efforts.
Between 2004 and 2008, foreign grants accounted for approximately 17.22 per cent, dropping to 13.15 per cent between 2009 and 2013, and further to 11.18 per cent between 2019 and 2022.
The draft budget is based on projections of real economic growth of 2.5 per cent and nominal growth of 4.9 per cent, while maintaining moderate inflation rates, which will contribute to enhancing financial and monetary stability.
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