The Cabinet approved the 2027 General Budget Bill at its meeting on Sunday, chaired by Prime Minister Dr Jaafar Hassan, paving the way for its referral to the House of Representatives for approval in accordance with constitutional procedures.
اضافة اعلان
Approving the budget bill early reflects the government's commitment to constitutional deadlines and aims to accelerate the implementation of capital projects included in the budget. This is expected to improve execution efficiency and bring forward the economic impact of projects, particularly those considered priorities.
The following are the main provisions and financial allocations included in the draft budget:
Monthly salary increases: The budget allocates the necessary funds to cover a monthly increase of JD30 for public-sector employees in both the civilian and military sectors, as well as civilian and military retirees whose monthly salaries are below JD600. The measure is expected to benefit a broad segment of employees and retirees, improve their living standards and help them cope with rising living costs. Its total estimated cost is approximately JD260 million, with implementation beginning at the start of the year.
Increased funding for the armed forces and security agencies: Allocations for the Jordan Armed Forces–Arab Army and security agencies will be increased in recognition of their central role as the country's first line of defence and their responsibility for protecting Jordan, safeguarding its security and maintaining stability. The additional funding will enable them to continue carrying out their national duties effectively amid current challenges.
Continued social protection support: The government will maintain financial support for social protection programmes and initiatives targeting the most vulnerable groups. This includes continuing to cover cancer treatment costs, supporting essential commodities, keeping subsidized bread prices unchanged, strengthening strategic wheat and barley reserves, and continuing subsidies for household gas cylinders. These measures aim to protect citizens' purchasing power and limit the impact of rising living costs.
Higher capital expenditure: Capital spending is projected to increase by approximately 18% compared with its revised 2026 level, exceeding the growth rate of current expenditure and reaching around JD1.7 billion. This reflects the government's intention to increase investment in priority development projects and compensate for the decline in capital spending during 2026 resulting from regional instability. The increase is expected to accelerate project implementation, improve public services and infrastructure, stimulate economic activity and create employment opportunities.
Current expenditure: Current spending is expected to rise by approximately 6.4% compared with its revised 2026 level, reaching around JD12 billion. This increase is lower than the projected growth in domestic revenues and is intended to cover essential financial obligations and the operating requirements of ministries and government departments, while maintaining support for priority sectors, including social protection and national security.
Major strategic projects: The government will continue implementing major development projects with significant economic and strategic impact, foremost among them the National Water Carrier Project and the development of the Risha Gas Field. These projects are intended to strengthen water security and energy supplies while reducing reliance on external sources.
Investment in essential sectors: Capital allocations for projects in education, health, public works and water will be increased. The budget will also support municipal development projects and improvements to infrastructure and essential services across the Kingdom.
Development priorities in the governorates: Funding will be directed toward the service and development needs of Jordan's governorates, including priorities identified during Royal visits and Cabinet meetings held across the Kingdom. This is intended to ensure that capital spending reflects actual needs and development priorities.
Economic modernization programmes: The government will continue implementing projects and initiatives under the second executive programme of the Economic Modernisation Vision, strengthening the contribution of different economic sectors to growth and job creation.
The draft budget aims to maintain macroeconomic stability and reinforce the resilience of the national economy, supporting nominal gross domestic product growth of approximately 5.6% in 2027. This will be pursued through continued implementation of the second executive programme of the Economic Modernisation Vision and the executive programme for public-sector modernization, with the aim of improving government performance and the quality of services provided to citizens.
It also seeks to advance the objectives of the National Financial and Economic Reform Programme, strengthen financial and economic stability, support sustainable economic growth, improve the competitiveness of the national economy and create a more attractive environment for business and investment. These efforts are intended to stimulate domestic investment and attract additional foreign investment.
The budget also aims to maintain overall price stability and keep inflation at moderate levels, continue reducing the current account deficit in the balance of payments, and strengthen public-private partnerships in implementing projects and investment opportunities. The government intends to draw on private-sector expertise and resources to accelerate major development projects.
Domestic Revenues and Fiscal Consolidation
Domestic revenues are projected to increase by approximately 11% in 2027 compared with their revised 2026 level, reaching around JD10.9 billion. This reflects continued improvement in economic activity and greater efficiency in financial administration and revenue collection.
To strengthen domestic revenues and expand reliance on national resources, the draft budget focuses on measures to improve tax and customs compliance, combat tax and customs evasion and avoidance, and expand the use of the National Electronic Invoicing System.
It also предусматри the use of artificial intelligence technologies in tax auditing and analysis to improve collection efficiency and reinforce the principles of fairness, transparency and equal treatment among taxpayers.
Through the draft budget, the government will continue pursuing a gradual fiscal consolidation policy and strengthening financial sustainability.
The general budget deficit after grants is expected to decline to around JD2 billion in 2027, compared with approximately JD2.1 billion in 2026. The primary budget deficit is also projected to fall to around JD450 million, down from JD650 million in 2026.
These targets reflect the government's commitment to continuing fiscal reform, improving the management of public resources and balancing development spending and social needs with the preservation of financial stability and public debt sustainability.
Source: Petra
