Amman, Minister of Finance Mohammad Issis is slated to deliver the 2023 public budget speech on Monday before the Lower House of Parliament, amid governmental optimism to achieve positive outcomes that reduce the financial deficit through reform programs to gradually move away from the ramifications of the Covid-19 pandemic and the Russo-Ukrainian war.
The 2023 budget estimates JD11.4 billion of expenditure, with a JD2.6-billion pre-foreign aid budget deficit and revenues of JD9.6 billion. The Gross Domestic Product (GDP) is expected to grow by 2.7 percent to JD36.9 billion, along with an inflation rate of 3.8 percent.
The government had previously affirmed it would not impose new taxes or increase old ones in 2023 with the success of its anti-tax evasion and avoidance policies and a 6.6-percent increase in tax collections, in addition to an increase in foreign aid to JD802 million (or 8 percent) last year.
Some JD355 million were earmarked for the Economic Modernization Vision, which aims, through JD41-million worth of investments, to create one million jobs over the next ten years, in addition to JD40 million allocated for the Public Sector Modernization Roadmap (2022-2033).
Under a constitutional amendment, the 2023 budget became the first to be submitted under one public budget law with two chapters. One of these chapters is dedicated to the 25 government units, which have a projected income of JD671 million, down JD283 million from 2022 after excluding the Central Bank of Jordan’s budget, while their expenditure is estimated at JD1.467 billion with a JD795-million deficit.
Challenges facing the 2023 budget remain the same as 80 percent of expenditures are deducted with 64 percent going to wages, salaries, retirement, and compensation, and 16 percent going toward loan interest, as well as the below-ambition grants and aid compared to the cost of hosting refugees, which has placed tremendous pressure on the country’s sectors. Moreover, challenges of unemployment, inflation, and energy price fluctuations that affect productivity and the standard of living continue to exist.
Source: JordanNews Agency