Jordan Budgets For Lower Deficit, Cost Rationalization In 2018

Cash-strapped Jordan, struggling to cope with the cost of hosting over one million Syrian refugees, hopes to cut its deficit by 29% in real-terms in 2018.

But, with foreign aid receipts lagging, achieving this will likely depend on engineering a double-digit boost to domestic revenues.

Unveiling the draft budget to parliament on 25 November, Finance Minister Umar Malhas, said that the deficit (after foreign grants) is projected to fall to JD543mn ($766mn at JD1=$1.41), or 1.8% of GDP in 2018 from the revised JD752mn, or 2.6% of GDP in 2017.

Budget expenditure in 2018 will rise in nominal terms by 6.8% to JD9.039bn, with total revenue increasing by 10.1% to JD8.496bn; in real terms the rises are 5.2% and 8.5% respectively (see table).


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