Amman:Ministries and public entities have successfully reduced their operational expenditures by JOD 94 million (USD 132.5 million) during the first nine months of 2026. This marks a 21.5 percent saving against the allocated budget for the period, as revealed in a report by the Ministry of Finance.
According to Jordan News Agency, actual operational spending amounted to JOD 343.2 million, compared to the allocated nine-month benchmark of JOD 437.1 million. The total annual operational budget was set at JOD 582.8 million. Spending reductions were observed across various administrative categories, including rental contracts, public utilities, fuel and fleet operations, furniture maintenance, and office supplies, with savings ranging from 7.0 percent to 45.2 percent.
The most substantial savings were seen in stationery, printing, and office supplies, where expenditures decreased by 45.2 percent, generating a JOD 13.3 million surplus. This was achieved by reducing spending to JOD 16.1 million out of an allocated JOD 29.4 million, largely due to the digitalization of government processes and public services. Electricity expenditures saw the second-largest reduction, declining 28.9 percent to save JOD 10.5 million, with actual utility spending at JOD 25.8 million against an allocated JOD 36.3 million. This was supported by increased solar energy generation and the implementation of smart street lighting.
Property usage expenses dropped 27.8 percent, saving JOD 500,000, with total spending of JOD 1.3 million against an allocated JOD 1.8 million. Rental costs decreased by 21.9 percent, saving JOD 3.5 million, primarily by terminating rented school facilities. General services outlays were cut by 21.8 percent, resulting in JOD 34.7 million in savings.
Telecommunication expenses fell 20.5 percent to JOD 3.1 million against a budgeted JOD 3.9 million, while raw material expenditures dropped 19.9 percent to JOD 107.7 million against a JOD 134.4 million allocation, saving JOD 26.7 million. Insurance costs decreased by 17.7 percent to JOD 2.9 million, saving JOD 600,000. Machinery and furniture maintenance expenses fell by 17.6 percent to JOD 6.8 million, saving JOD 1.5 million. Fleet and vehicle operating costs decreased by 7.7 percent to JOD 3.6 million.
This cost-efficiency initiative is part of an executive directive from Prime Minister Jafar Hassan, who instructed government agencies to rationalize spending. Building on these outcomes, the Prime Minister has directed the Minister of Finance to develop a comprehensive framework to further reduce operational expenses by an additional 15 percent in the next fiscal year.
The Greater Amman Municipality is also progressing with its 2026 Smart Lighting Project, aiming to replace 32,500 conventional streetlamps with LED units, projecting a 50 percent reduction in energy consumption. Additionally, the merger of the Civil Consumer Corporation into the Military Consumer Corporation aims to optimize supply chain costs and eliminate redundancies.
In healthcare, an electronic pharmaceutical inventory management system saved JOD 3.099 million between April and October 2025, by improving drug distribution tracking and optimizing prescription protocols.