AMMAN — During the first seven months of
2022, the government budget recorded a JD1.005 billion deficit after grants,
almost double that of the same period of last year, when it stood at JD521.9
million.
اضافة اعلان
The Ministry of Finance’s monthly bulletin shows
that the deficit before external grants amounted to JD1.087 billion in the said
period, the total budget revenues amounted to JD4.882 billion, and local
revenues amounted to JD4.8 billion.
According to economist Wajdi Makhamreh, the 10
percent increase in local revenues “was due to the increase in the tax on goods
and services, and to the fact that there was big government spending on capital
projects”.
To address the budget deficit, he said that the
government “should support foreign investment”.
Moreover, since “in recent times, we have witnessed
a sharp decline in investment, the government should work on reducing current
expenditures and merging agencies, exploiting untapped resources by attracting
partners, as well as on rationing energy, as they do it in all countries of the
world,” he elaborated.
The rise in capital expenditure was unreasonable, having exceeded JD300 million, and this led to the significant deficit increase.
Makhamreh, however, predicted that the deficit is
expected to decrease by the end of the year, as more aid is expected.
According to economist Mazen Irsheid, the deficit is
big largely because the “grants did not reach their intended destination in the
first seven months of this year”.
Irsheid said that the rise in capital expenditure
was unreasonable, having exceeded JD300 million, and this led to the
significant deficit increase.
“The government was supposed to reduce capital
expenditure, such as for building hospitals, schools and paving streets, and
postpone it for the coming years, to get out of this impasse,” he said.
According to economist Mufleh Aqel, the large budget
deficit is due to the fact that that of the JD2 billion foreign aid promised to
Jordan, only JD82 million had arrived until the end of July, as well as to
“increased spending”.
Economist Yusuf Mansur told
Jordan News that
spending on matters “that do not increase the income of the citizen or the
government”, as well as “the weak growth rate”, contributed to the budget
deficit.
Read more Features
Jordan News
.jpg)
.jpg)
