(MENAFN- Jordan News Agency)
Amman, Jan. 6 (Petra) -- The Lower House of Parliament began its 2025 budget deliberations Monday against a backdrop of dwindling international refugee support and persistent economic challenges, with lawmakers examining a JD12.51 billion spending package that aims to boost public sector wages while maintaining fiscal discipline.
The session, chaired by House Speaker Ahmed Safadi and attended by Prime
Minister Jafar Hassan, heard stark warnings about the impact of declining foreign aid for the kingdom's substantial refugee population. Finance Committee rapporteur Awni Zoubi revealed international support has dropped to cover just 15 percent of refugee-related costs. "International commitments have fallen dramatically," Zoubi told lawmakers, noting only $285 million in aid was received - $132 million for refugees and $152 million for host communities.
The shortfall comes as refugee poverty rates are projected to surge to 80 percent by 2025 from 67 percent in 2023. The government's JD12.51 billion spending plan, up 6 percent from 2024, forecasts revenues of JD10.23 billion. Tax revenue is expected to reach JD7.12 billion, with income tax contributing JD1.83 billion and sales tax JD4.84 billion. Foreign grants are projected at JD734 million, marking a slight decline.
In a key move to address public sector concerns, the Finance Committee recommended cutting JD40 million from current expenditures - divided equally between government departments and units - to fund salary increases for civil servants and military retirees.
Committee Chairperson Nimer Sulehat said the budget also envisions creating 11,000 new jobs in education and health. The economy showed mixed signals, with agriculture growing 5.9 percent and manufacturing rising 3.5 percent, while construction contracted 2.2 percent.
The industrial sector dominated investment flows, capturing JD552.4 million or 75.5 percent of total investments. Unemployment remains high at 21.5 percent despite a slight improvement, while inflation eased to 1.35 percent.
Key allocations include JD242.5 million for basic goods subsidies, JD135 million for healthcare, and JD75 million in university support. The debate continues with MPs given 10 minutes each to respond, and bloc representatives allocated 20 minutes.
The budget discussions reflect Jordan's delicate balancing act: maintaining social support and managing refugee costs while pursuing fiscal stability amid reduced international assistance. The Finance Committee pledged quarterly monitoring of the government's implementation of its recommendations.
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