2027 Budget Circular: Operating Expenses Cut, Preliminary Ceilings Set for Ministries, and Digital Transformation Expanded

2027 Budget Circular: Operating Expenses Cut, Preliminary Ceilings Set for Ministries, and Digital Transformation Expanded
2027 Budget Circular: Operating Expenses Cut, Preliminary Ceilings Set for Ministries, and Digital Transformation Expanded
The 2027 budget circular sets preliminary expenditure ceilings for ministries and governorates, requesting budget submissions by mid-July.

A JOD 30 monthly increase for employees and retirees earning under JOD 600 under the 2027 budget circular.اضافة اعلان

2027 Budget: Detailed planning for the next three years and a clearer link to the Economic Modernization Vision.

The budget circular issued by Prime Minister Jafar Hassan for the preparation of the General Budget Draft Law for the 2027 fiscal year has revealed a government directive instructing ministries, departments, and government units to reduce operating expenses by 15% next year.

According to the circular, which was reviewed by Al-Mamlaka, all ministries, departments, and government units are required to prepare detailed budgets for the years 2027–2029. These must be submitted to the General Budget Department no later than mid-July, coinciding with the preparation of the draft regulation for the job structures of ministries, departments, and government units for the 2027 fiscal year.

The circular noted that when preparing current expenditure estimates for the years 2027–2029, government bodies must factor in a salary increase consisting of a monthly raise of JOD 30 for civil and military employees and retirees whose monthly salaries or pensions are below JOD 600.

The directive stressed the necessity of adhering to the preliminary expenditure ceilings specified for the draft budget, strictly prohibiting any overruns unless required by the public interest. In such cases, justifications regarding the additional requested allocations and the reasons for changes compared to the 2026 budget must be provided, in line with the government's approach to controlling and rationalizing public spending.

Furthermore, it emphasized prioritizing ongoing and under-construction capital projects, projects tied to the Economic Modernization Vision and the Public Sector Modernization Roadmap, as well as projects the government committed to during cabinet sessions held in the governorates or during official regional field visits.

The circular also featured an expanded mandate to integrate green economy and climate change priorities into budget proposals. This requires taking into account national commitments regarding carbon emission mitigation, environmental impacts, and climate adaptation, alongside including the necessary allocations for relevant projects and activities. It also called for incorporating the requirements of digital transformation, the automation of government services, and the enhancement of the national cybersecurity ecosystem.

The Prime Minister requested that government entities align their programs and projects with national priorities, strategic goals, and performance indicators. They must also define targeted outcomes within the medium-term framework for the years 2027–2029, thereby reinforcing a result-oriented budgeting methodology and linking public spending to designated developmental and service objectives.

Finally, the circular obligated ministries, departments, and government units to prepare a summary of the 2027 job structures schedule, detailing vacant, newly created, and abolished positions, while taking into account public sector guidelines for quantitative and objective job evaluation, analysis, and job-coding requirements.