Finance committee analyzes the 2024 Jordan digital economy budget

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(File photo: Jordan News)
AMMAN – On Tuesday, the Parliamentary Finance Committee discussed the budget of the Ministry of Digital Economy and Entrepreneurship along with its affiliated departments, as part of their negotiations on the General Budget Law for 2024, reported Al-Mamlaka TV.اضافة اعلان

The meeting included committee chairman Nimr Al-Salihat, Minister of Digital Economy Ahmed Al-Hanandeh, chairman of the Jordan Post Sami Dawud, chairman of the Telecommunications Regulatory Commission (TRC) Bassam Alsarhan, the Ministry’s Secretary-General and the Director-General of the Jordan Post.

They highlighted that the budget for the Ministry of Economy is estimated at JD41.44 million, representing an increase of approximately JD5.2 million compared to the re-estimated 2023 budget.

Al-Salihat further explained that current expenditures amounted to around JD9.8 million, reflecting an increase of about JD 1.7 million due to a natural increase in salaries and filling vacancies. He emphasized the need for the committee to address these vacancies, as well as fulfilling the ministry’s requirements, which incurred a cost of JD673,000.

Regarding capital expenditures, Salihat stated that they reached approximately JD 31.6 million, showing an increase of JD5.2 million. He underscored the importance of the committee’s implementation of the ministry’s projects.

Al-Salihat also highlighted the Jordanian e-Government, which contributes to enhancing the efficiency of the public sector. Despite the rise in the number of digital government services from 628 to 1440 in 2024, the index increased by 0.4 every two years.

He further clarified the impact of digital services on the public sector’s performance, which received a total allocation of approximately JD89 million for 2023 and 2024. Additionally, projects involving youth, technology, and employment with the World Bank saw an increase from JD 3.5 million in 2023 to JD 10 million in 2024.

Furthermore, Al-Salihat raised questions regarding the decision to raise prepaid card prices and its legality. He also inquired about the impact of JD1 million support for the electronic gaming industry.

Regarding the TRC, the estimated budget for the commission is JD 9.9 million, representing an increase of JD23,000 compared to the re-estimated 2023 budget. Current expenditures amounted to approximately JD6.5 million, with an increase of JD316,000, including JD234,000 for growth and filling vacancies.

Al-Salihat sought clarification on the reasons behind the rise in the use of goods and services, totaling around JD 62,000, as well as other expenses amounting to JD20,000.

Capital expenditures, according to Al-Salihat, reached approximately JD3.4 million, showing a decrease of about JD300,000. This includes expenses related to the new commission building and its equipment. He requested detailed information about the projects and their significance for the commission. Additionally, there was an allocation of JD500,000 for consumption and JD30,000 for supporting initiatives, along with JD20,000 for furniture.

The committee further inquired about all items in the ministry’s budget, including support for the electronic gaming industry, investment environment, entrepreneurship in the telecommunications and information technology sector, the impact of digital services on enhancing public sector performance, telecommunications sector development, quality of services, 5G technology and future services.

Hanandeh highlighted that Jordan achieved a significant milestone by becoming the first country after the Gulf states to introduce 5G services for both public and private sectors. He emphasized that 5G networks have revolutionized digital communications and the internet, with a financial impact of approximately JD362 million on the state treasury.

Hanandeh confirmed that at the beginning of the upcoming year, 14 government service centers, currently being established in several governorates, will be fully operational.

Al-Sarhan stated that more than 60 percent of Jordanian households are connected to a fiber-optic network. The upcoming phase is significantly different, and the government has its own network, which incurred costs of around JD14 million.

He emphasized that despite radical changes in its services, the authority has reduced its budget this year, aiming to match global standards in telecommunications services.

The authority has worked on utilizing state resources and providing various necessities and specialized services for the communications sector. Al-Sarhan elaborated on several key areas that the authority focused on in its work, highlighting its role in monitoring and regulating the sector.

On the other hand, Al-Hanandah also added that the allocated support for the Jordan Post reached approximately JD3.5 million.

Dawud stated that over 50 percent of e-commerce transactions come to Jordan through the postal service. He highlighted the ongoing efforts to keep the postal service aligned with global advancements.

He also mentioned that the postal debt amounted to about JD 26 million, which was reduced last year by approximately JD1 million. He clarified that the accumulation of debt was a result of the government discontinuing services for the postal system in 2006.