The 2022
general budget, announced by the government on Sunday, has been met with mixed
reactions, and is seen as “redundant” by some experts and analysts, who say
that it would not give a window for the private sector to launch new projects, and
thus will not contribute to decreasing unemployment and poverty.
اضافة اعلان
The former
general manager of the Association of Banks in Jordan, Adli Qandah, told
Jordan
News that it was not clear if the increase in capital expenditure would be
in the interest of the Kingdom, and its citizens. “We need to learn what this
expenditure is used for,” he said, indicating that new projects must be
developed in different sectors, using the allocated expenditure, to achieve a
drop in unemployment and poverty rates.
He said
that the government needs to strengthen its partnership with the private sector
to develop new projects and create incentives to revive the economic cycle. “The
government cannot afford to continue to provide them with material support; it
should ease their financial burdens by reducing the taxes and fees imposed on
mega-projects.”
Qandah
pointed out that the sales tax generally shows absence of fairness, where the
same percentage is imposed equally on all segments of society, urging a review
of the sales tax to stimulate the economy.
He shed
doubt on the possibility that new mega-projects will emerge in the near future,
and called on the government to focus more on developing sustainable
developmental projects, and to promote investment.
Hussam
Ayesh, an economic analyst, told
Jordan News that the government has to focus
on attracting investments in light of several sectors being hit by stagnation. However,
Ayesh said that the government’s plan to strengthen self-reliance through
revenue from 74 percent in 2021 to 88.5 percent in 2022 is a good indication of
progress, “although in some years it stood at 100%.”
Economic
expert Mazen Irshaid expressed satisfaction with the 2022 budget despite the
extraordinary circumstances resulting from COVID-19, particularly with the
increase in tax revenue, which he said “underpins the government’s seriousness
in tax collection, rather than imposing new taxes on citizens.”
He also
stressed the need for ventures that reduce poverty and unemployment, which has
reached record levels in Jordan’s history.
A source at the Ministry of Finance, who spoke on condition of
anonymity, told
Jordan News that “the annual budget is promising. However,
citizens’ commitment is required during the current circumstances to help
jump-start the economy.”
The 2022
general budget was announced at a joint news conference by minister of State
for Media Affairs and official spokesman for the government, Faisal Shboul, and
minister of Finance, Mohamad al-Ississ, who acknowledged its complexity amid
extraordinary circumstances due to the pandemic.
While 2021
has witnessed a real economic growth of 2 percent, the 2022 budget foresees an
increase in growth to 2.7 percent. Foreign aid saw a slight rise, up to JD848
million in 2022 from JD840 million in 2021, while public sector wages continue
to make up a large portion of the budget (66 percent), with an allocation of JD1.029
billion.
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