Deficit Doubles as Public Revenues and Foreign Support Decrease

CBJ Interest Decrease Policies Saves Government JOD80 Million

تم نشره في Wed 23 March / Mar 2016. 01:00 AM - آخر تعديل في Wed 23 March / Mar 2016. 06:55 PM
  • Central Bank of Jordan Building in Amman (Photography: Mohammad Abu Ghoush)

AMMAN — The final figures of central public budget for the year 2015 indicate that the decrease in income from public revenues and foreign aid caused the net deficit to nearly double.

Notably, the balance was primarily constructed on the assumption of JOD7.4 billion overall income due from revenue and aid, while the actual figures stand about JOD600 million short of the initial numbers at roughly JOD6.8 billion.

Apparently, revenues aggregated a total of JOD5.9 billion as opposed to the assumed JOD6.2 outlined in the balance, citing a 2.3 per cent growth rate against the foreseen 3 per cent rate by end of 2015.

Published figures, in this discourse, show that Jordan has all in all made less revenues in 2015 than in the year before, noting public income accumulated around JOD6 billion by the end of 2014, almost JOD100 million more.

As for income from foreign aid and support, the public balance was based on the provision of JOD1.1 billion in aid from donors, but actually cited JOD886 million; a JOD242 million amount in variance from basic assumption of the 2015 balance sheet.

On the positive note, the Ministry of Finance, was capable of reducing public expenditure by JOD152 million in 2015, spending JOD7.7 billion instead of the JOD7.87 billion highlighted in the preliminary balance, saving the Government from incurring further debt.

More so, the Central Bank of Jordan (CBJ)’s interest reduction policies saved the government an additional JOD80 million, at an actual expenditure of JOD710 million, also contributing to the reduction of incurred liabilities.

Accordingly, domestic income to public expenditure rates decreased instead of increasing, at 76.5 per cent, instead of the 80 per cent target rate outlined in the publically.

All in all, deficit after aid and donations doubled to JOD928 million as opposed to the supposed JOD468 million, mindful of the fact that debt excluding aid would have reached JOD1.8 billion. And according to data estimates from the Ministry of Finance for 2015, net public debt —compared to 2014’s 7.6 per cent, has increased by JOD2.2 billion to 11.2 per cent, culminating an overall JOD22.8 billion in debt and 84.2 per cent of Jordan’s GDP.

Mentionable is that the Government has executed the Economic Reformation programme in cooperation with the International Monetary Fund (IMF) over the period 2012-2015.