JORDAN’S NEW GOVERNMENT ANNOUNCES PLAN FOR CUTTING PUBLIC SPENDING

Jordan’s newly formed government, announced a plan on Tuesday, to cut public spending by 150 million dinars (about 210 million U.S. dollars), this year.

“It is unacceptable, whenever there is weak economic growth and there is a decline in revenues, that we resort to imposing taxes, the priority should be for cutting public spending,” Prime Minister, Omar Razzaz, said.

The premier said, the Ministry of Finance has prepared a report on reducing spending by all ministries and independent public agencies and institutions by 150 million dinars during 2018.

He said, the government will immediately embark on a national dialogue about the income tax draft bill.

“There will be a comprehensive revision of the overall tax structure, and the tax burden with focus on the income tax draft bill, to ensure justice,” he said, promising transparency, to ensure accountability.

The income tax bill triggered nationwide protests that resulted in the resignation of the government of former Prime Minister, Hani Mulki.

Razzaz also said, Jordan is committed to an extended fund facility (EFF), with the International Monetary Fund.

Under the deal, the government and the IMF agreed on six conditions that aim at reducing public debt to safe levels and stimulating the economy.

Source: Jordan News Agency