Amman:The government has released Official Circular No. 17 of 2026, outlining the operational guidelines for drafting the Fiscal Year 2027 General Budget Law. This circular also sets the framework for the Regulation of Ministry and Department Formations.
According to Jordan News Agency, the circular introduces a cost-of-living adjustment for public-sector civil servants, military personnel, and pensioners, providing a JD 30 monthly wage increase for those earning below JD 600. It also maintains standard annual step-increments and pension cost-of-living indexation for civil and military services.
The circular calls for all ministries, government departments, and sovereign public units to submit their medium-term expenditure frameworks for 2027-2029 by November 5. These submissions must comply with fiscal ceilings and integrate governorate capital expenditure plans.
The fiscal strategy aims to align with Royal directives, pursuing the second phase of the Economic Modernization Vision and Public Sector Modernization Program (2026-2029). This involves balancing social safety net expansions with fiscal consolidation and debt-to-GDP reduction goals.
Macroeconomic projections for the 2027 budget anticipate a real GDP growth of 3.1 percent, with nominal GDP growth at 5.6 percent. Inflation is projected at 2.3 percent, with export and import volume growth targeted at 9.2 percent and 8.2 percent, respectively.
Expenditure priorities include public-private partnership capital commitments, notably in the National Water Carrier and National Railway projects, and allocations for Strategic Commodity Price Stabilization. Recruitment will be limited to budgeted vacancies, and administrative austerity measures will be enforced.
New major capital projects for FY 2027 must be vetted through the National Registry of Investment Projects, with climate-risk impact assessments required before funding approval.