Amman: The Cabinet on Wednesday approved the draft general budget law for the fiscal year 2026, paving the way for its submission to the National Assembly in accordance with constitutional procedures.
According to Jordan News Agency, Finance Minister Abdulhakim Shibli presented the main features of the draft law, which projects real economic growth to rise from 2.7% in 2025 to 2.9% in 2026, with expectations to exceed 3% in 2027 and 2028. This growth is attributed to the launch of major capital projects, including the National Water Desalination Project, the railway project, and gas exploration and transport projects. Inflation is expected to remain stable at around 2% during 2026-2028, which is one of the lowest rates in the region.
Based on updated revenue and expenditure projections, the total budget deficit is anticipated to decline to about JD 2.125 billion (4.6% of GDP) in 2026, down from the estimated JD 2.258 billion (5.2%) in 2025. The 2026 general budget aims to implement the requirements of the Economic Modernisation Vision, continue the economic and fiscal reform programme, gradually reduce the overall deficit and public debt as a share of GDP, and enhance the coverage of current expenditures through domestic revenues. The budget also aims to maintain subsidies for bread and cooking gas, fund social protection programmes, and cover cancer treatment for Jordanian patients.
Key budget indicators show domestic revenues projected at JD 10.196 billion, supported by stronger economic growth. However, the 2025 revenue forecast was revised downward by JD 200 million due to regional instability and potential geopolitical risks. Current expenditures are expected to rise to JD 11.456 billion, reflecting higher operational costs, salaries, and funding for new vacancies across ministries and government departments, along with continued support for the armed forces and security agencies. Interest payments are estimated at JD 2.26 billion, slightly lower than expected, due to the government’s debt management strategy.
The draft budget includes support packages totaling JD 655 million for various sectors, such as JD 124 million for the national cancer insurance program, JD 80 million for subsidised gas cylinders, JD 280 million for social protection programmes, and JD 170 million for bread and animal feed subsidies. Allocations for the purchase of medicines and medical supplies were also raised to about JD 135 million.
Capital expenditures in the 2026 draft budget increased to JD 1.6 billion, compared with a revised estimate of JD 1.37 billion in 2025, to fund key national development projects. These include JD 396 million for Economic Modernisation Vision projects, JD 60 million for the National Water Carrier Project, JD 35 million for the Risha Gas Exploration Project, and JD 210 million to support municipal development. The draft budget reflects the government’s commitment to achieving balanced economic growth, enhancing fiscal discipline, and supporting priority sectors to sustain development and improve public services.