Real economic growth expected to rise from 2.7% in 2025 to 2.9% in 2026, and to exceed 3% in 2027 and 2028.
Overall budget deficit projected to decline to JOD 2,125 million (4.6% of GDP), compared with JOD 2,258 million (5.2%) in 2025.
اضافة اعلان
Inflation expected to remain low at around 2% over the next three years — the lowest rate in the region.
JOD 396 million allocated for Economic Modernization Vision projects, JOD 60 million for the National Water Carrier Project, JOD 35 million for Risha gas exploration, and an increase in municipal development support from JOD 180 million to 210 million.
Total sectoral support allocations amounting to JOD 655 million, including JOD 124 million for cancer treatment coverage, JOD 80 million for gas cylinder subsidies, JOD 280 million for social protection programs, and JOD 170 million for bread and fodder subsidies.
The Cabinet, headed by Prime Minister Dr. Jaafar Hassan, approved on Wednesday the draft General Budget Law for the fiscal year 2026, paving the way for the completion of constitutional procedures and its submission to the National Assembly.
Minister of Finance Dr. Abdelhakim Al-Shibli presented an overview of the main elements and assumptions underpinning the draft budget. These include expectations of sustained real economic growth, rising from 2.7% in 2025 to 2.9% in 2026, and surpassing 3% in 2027 and 2028 — driven by the launch of major capital projects such as the National Water Carrier for Desalination, railway development, and gas exploration and transportation projects. Inflation is projected to remain around 2% between 2026 and 2028 — the lowest in the region.
Based on projected revenues and expenditures, the overall budget deficit for 2026 is expected to decline to about JOD 2,125 million, or 4.6% of GDP, compared with an estimated JOD 2,258 million (5.2% of GDP) in 2025.
Economic and Fiscal Objectives
The 2026 general budget aims to achieve several key objectives, including:
Implementing the requirements of the Economic Modernization Vision and its strategic projects as a national plan that transcends governments.
Continuing the implementation of the economic and fiscal reform program to enhance financial and economic sustainability.
Fiscal objectives focus on:
Maintaining a gradual reduction in the overall deficit and public debt as a percentage of GDP.
Increasing domestic revenue coverage of current expenditures.
Sustaining subsidies for bread and gas cylinders and ensuring comprehensive financing for social protection programs.
Covering the treatment costs of Jordanian cancer patients.
Key Budget Indicators
The 2026 budget projects domestic revenues to rise to JOD 10,196 million due to stronger economic growth. Revenues for 2025 were re-estimated downward by JOD 200 million due to regional developments and the Iranian–Israeli conflict.
Current expenditures are set to increase to JOD 11,456 million, reflecting higher operational costs, salaries and wages, and funding for new government positions. The budget also maintains allocations to support the Jordan Armed Forces and security agencies.
Interest payments are projected to rise slightly — less than previously anticipated — reaching about JOD 2,260 million, as the government continues its strategy of replacing costly debt with loans at more competitive rates.
The budget includes support packages for multiple sectors totaling JOD 655 million, among them:
JOD 124 million for cancer insurance coverage, benefiting around 4.1 million Jordanians,
JOD 80 million for gas cylinder subsidies (up from 63 million),
JOD 280 million for social protection, and
JOD 170 million for bread and fodder subsidies.
Additionally, allocations for the procurement of medicines and medical supplies have been raised to about JOD 135 million.
Capital Expenditures
Capital spending in the 2026 budget increased to JOD 1,600 million, compared with a revised JOD 1,370 million in 2025, to finance priority national development projects, including:
Economic Modernization Vision projects: JOD 396 million
National Water Carrier Project: JOD 60 million
Risha gas exploration: JOD 35 million
Municipal development and support: JOD 210 million, up from JOD 180 million.
—(Petra)
