Lower House Starts Deliberations Over Draft Budget Law For FY25

(MENAFN- Jordan Times) AMMAN - The Lower House on Monday embarked on deliberations over the draft general budget law for fiscal year 2025.

The session, chaired by Lower House Speaker Ahmad Safadi and attended by Prime Minister Jafar Hassan and other government officials, included a detailed presentation of the Finance Committee's report delivered by MP Awni Zoubi.

On December 9, the Chamber referred the draft law to the Finance Committee, which reviewed it in coordination with ministries, government entities and institutions.

Zoubi, the committee's rapporteur, highlighted the significant economic and social impact of regional and global challenges, referring to the burden on Jordan's economy of hosting Syrian refugees and the insufficient contributions of the international community.

The economic burden of hosting Syrian refugees was exacerbated by a decline in international financial support, he said, noting that in 2024, global contributions totalled $285 million, covering only 15 per cent of the associated costs. Of this, $132 million went directly to support refugees, while $152 million went to support host communities.

"This shortfall has delayed critical infrastructure improvements, particularly in education, health and water systems," Zoubi said, noting that 67 per cent of refugees lived below the poverty line in 2023, a figure that is expected to exceed 80 per cent by the end of 2025.

The committee's report revealed mixed results in Jordan's economic performance across different sectors in 2024.

The agriculture sector recorded growth of 5.9 per cent, while manufacturing expanded by 3.5 per cent. The electricity and water sector grew by 4.6 per cent, reflecting "steady" improvements in utility services.

The construction sector faced challenges and recorded a decline of 2.2 per cent.

He added that inflation eased to 1.35 per cent in 2024, down from 2.21 per cent in the previous year, while unemployment dropped to 21.5 per cent in the third quarter of 2024, marking a 0.8 per cent improvement in comparison with the same period of 2023.

Exports grew by 5.9 per cent in the first 10 months of 2024, reaching JD7.876 billion. Investments under the Investment Environment Law amounted to JD732 million, with 75.5 per cent going to the industrial sector.

The draft budget expects government revenues to reach JD10.233 billion in 2025, registering an increase of 9.3 per cent from 2024. Domestic revenues are expected to increase by 10.2 per cent.

Tax revenues increased by 12.7 per cent to JD7.122 billion.

Jordan's estimated grants reached JD734 million, a decrease of JD5 million compared to the revised estimates for 2024, which recorded an increase of JD15.8 million.

Public expenditure totalled JD12.511 billion, an increase of 6 per cent, or an additional JD712 million, compared to the previous year, while current expenditure is expected to increase by JD504 million, or 4.8 per cent, to JD11.042 billion.

The budget adjustments included an allocation of JD242.5 million for commodity subsidies, a decrease of JD16 million or 6.2 per cent from 2024.

Meanwhile, funding for medical treatment and exemptions has been increased to JD135 million, marking a "significant" increase of JD37.5 million or 34.5 per cent. Support for universities will remain unchanged at JD75 million.

To balance the budget while maintaining capital investment, the Finance Committee has recommended a JD40 million cut in operating expenses, equally divided between ministries and public entities. These savings will be used to increase salaries for civil and military employees and pensioners.

Following the presentation, lawmakers began debating the draft budget, where each MP was allotted 10 minutes to speak, while representatives of parliamentary blocs were given 20 minutes.

MENAFN06012025000028011005ID1109061396