Amman:The Cabinet has approved the draft General Budget Law for the fiscal year 2027, setting total expenditure at JD 13.7 billion and forwarding the legislative framework to Parliament for constitutional review.
According to Jordan News Agency, the early authorization is intended to open procurement, tender awards, and capital deployment channels before the fiscal year begins, aiming to prevent execution delays that affected public works during regional disruptions in 2026.
The fiscal breakdown indicates an 18 percent increase in capital outlays over re-estimated 2026 levels, reaching JD 1.7 billion, which surpasses the growth of current spending. Capital allocations focus on utility and resource infrastructure, with funding for the National Water Carrier Project, development at the Risha natural gas reserve, and municipal upgrades in line with the Economic Modernization Vision's second executive phase.
Current expenditure is set to rise by 6.4 percent to JD 12 billion, maintaining a slower growth rate than projected domestic revenues. The operational budget includes a JD 260 million package for a JD 30 monthly cost-of-living allowance for civil and military personnel and pensioners earning below JD 600 monthly.
Additional budgetary items enhance defense allocations for the Jordan Armed Forces-Arab Army and security directorates while ensuring social safety nets. State subsidies continue for price-capped bread, domestic LPG cylinders, wheat and barley reserves, and oncology treatment programs.
Revenue forecasts predict an 11 percent increase in internal collections over 2026 figures, reaching JD 10.9 billion, relying on non-tax revenue measures such as intensified enforcement against tax evasion and mandatory national electronic invoicing, without new taxes or rate increases.
The macroeconomic plan aims for a nominal GDP growth of 5.6 percent in 2027 while pursuing fiscal consolidation. The overall budget deficit after grants is expected to contract to JD 2 billion, down from JD 2.1 billion in 2026, with the primary deficit projected to reduce from JD 650 million to JD 450 million.