Amman – Jordan’s 2027 budget is set to strengthen economic growth and improve living standards through a package of measures combining higher citizen incomes, increased capital spending, faster implementation of strategic projects and expanded social protection programs, as the government targets economic growth of 3.1% next year.
اضافة اعلان
The priorities outlined in the budget preparation circular reflect an approach aimed at using fiscal policy more closely in line with growth and development priorities by boosting domestic and foreign investment, supporting productive and export-oriented sectors, developing infrastructure, maintaining fiscal and monetary stability, and improving the efficiency of public spending.
Economic experts said the assumptions and forecasts contained in the circular appear reasonable and achievable, although somewhat optimistic. They stressed that meeting the targets will require continued improvement in economic activity, a broader investment and production base, and stronger competitiveness for Jordanian exports.
In statements to Al-Ghad, they said combining salary increases, capital spending, major projects and social protection programs gives the budget integrated economic and social dimensions. Such measures could stimulate domestic demand, support productive sectors, create jobs and improve living standards, provided implementation is efficient and resources are directed toward development priorities.
The government issued Circular No. 17 of 2026 for preparing the General Budget Law and the government ministries, departments and units staffing system for fiscal year 2027. The circular includes assumptions targeting economic growth of 3.1%, export growth of 9.2% and an inflation rate of 2.3%.
Among the key measures is an additional monthly increase of JD30 for public-sector employees, members of the armed forces and security agencies, and civilian and military retirees whose total salaries are below JD600, in addition to the regular annual salary and pension increases.
The priorities also include increased capital spending and social protection programs, continued implementation of projects linked to the Economic Modernization Vision and public-sector modernization, support for productive sectors and investment, as well as expenditure controls, stronger domestic revenues and reductions in the primary deficit and public debt as a percentage of GDP.
Growth Target of 3.1% Considered Achievable
Economic expert Hossam Ayesh said the economic assumptions underpinning the 2027 budget preparation circular appear reasonable, although somewhat optimistic. He explained that achieving them will require continued improvement in economic performance, stronger domestic and external momentum, and regional conditions conducive to economic stability.
Ayesh noted that the circular combines growth stimulus through increased capital spending, domestic and foreign investment and accelerated implementation of strategic projects with measures to improve living standards, including the additional salary increase, expanded social protection and health insurance programs, and support for strategic commodities.
He added that these measures complement government efforts to improve public spending efficiency, strengthen domestic revenues and reduce the primary deficit and public debt relative to GDP, supporting fiscal sustainability and preserving the government’s ability to finance development and social needs.
He stressed that the main challenge lies in the availability of financial resources and the implementation capacity needed to deliver these objectives. Budget success requires genuine revenue growth and higher public-spending productivity, rather than simply reallocating expenditures within existing financial ceilings. It must also produce tangible economic and development outcomes.
Regarding the economic growth target, Ayesh said economic performance during the first half of the current year supports the possibility of reaching the government’s target. However, he noted that some international institutions forecast lower growth rates for Jordan, making the 3.1% target a challenge that will require continued improvement in economic activity and stronger investment and production.
On foreign trade, he stressed the importance of ensuring that expected import growth is linked to production and investment needs, particularly the import of equipment and systems required for economic projects, rather than being concentrated in consumer goods. This would make import growth a reflection of expanding investment and productive activity and greater productive capacity in the national economy.
Salary Increases to Boost Purchasing Power and Domestic Demand
Economic expert Ahmad Awad said the expected 3.1% economic growth rate next year appears achievable, but remains conditional on project implementation, investment and production incentives, and the economy’s ability to continue coping with regional pressures. He stressed that growth must translate into jobs, higher incomes and improved public services that citizens can actually feel.
Awad said the expected 9.2% growth in exports appears relatively reasonable in light of this year’s performance, but remains somewhat optimistic given regional conditions. He stressed the importance of directing policies and allocations toward supporting productive and export-oriented sectors and strengthening their ability to reach foreign markets.
He added that assessing this target requires examining the details of the draft budget law once it is prepared, particularly how export expectations will affect revenues and allocations for productive sectors, as well as the policies and projects expected to contribute to the targeted growth rates.
Regarding inflation, Awad said the forecast of 2.3% next year appears consistent with the moderate inflation rates recorded locally in recent years, while stressing the importance of continued stability in energy, food and transportation prices to preserve stability in living and production costs.
He said one of the most notable measures in the circular is the additional monthly JD30 increase for employees and retirees whose total salaries are below JD600. The circular also highlights school transportation, inclusive education and major projects, while support for basic commodities, expanded health insurance and social protection, and efforts to contain the deficit and public debt remain ongoing fiscal policy priorities.
Awad stressed that the importance of these measures depends on translating them into actual allocations and effective implementation that delivers tangible results. Economic growth, he said, should not be measured solely through macroeconomic indicators, but also by its ability to create jobs, improve incomes and expand services available to citizens.
Capital Spending to Strengthen Infrastructure and Growth
Capital spending is one of the main pillars of the 2027 budget priorities. The circular calls for allocating the necessary funds for strategic projects and public-private partnership projects, continuing programs and projects linked to the Economic Modernization Vision, and prioritizing infrastructure projects in water, transportation, energy, healthcare and education.
This includes the government’s contribution to the National Water Carrier and railway projects, projects to supply industrial cities with natural gas, and capital projects in the governorates. These initiatives are expected to support local development, improve infrastructure and services, and strengthen the investment environment across the Kingdom.
In this regard, economic expert Munir Deyeh stressed the importance of increasing capital-spending allocations in next year’s budget compared with the current year, while continuing to provide the resources needed to complete projects and programs stemming from the second executive program of the Economic Modernization Vision for 2026–2029.
Deyeh said continued financing of major government projects, particularly the National Water Carrier, railway and rural gas projects, alongside infrastructure and energy projects, would boost economic growth, improve overall economic performance, help reduce unemployment and increase exports.
He stressed the importance of continuing to allocate budgets for projects implemented by ministries and government institutions, particularly in the energy and public works sectors, to expand investment activity and maximize the economic impact of public spending. He also emphasized the need to give capital spending and major projects an appropriate share of the upcoming budget.
Major Projects as a Driver of Investment and Jobs
Former Minister of State for Economic Affairs Yousef Mansour said the approach of continuing to implement major strategic projects and strengthening public-private partnerships in infrastructure, water, transportation and energy represents an important pillar for driving economic growth and expanding investment activity.
He added that these projects would not only develop infrastructure and improve services, but also stimulate related economic sectors, create jobs and strengthen the national economy’s ability to attract investment. Accelerating their implementation would increase the impact of capital spending on economic activity.
The importance of these projects lies in their ability to generate interconnected economic effects, beginning with the activation of construction, industrial and service sectors and extending to improving the efficiency of transportation, energy and water systems. This would reduce production costs and strengthen the competitiveness of the national economy over the medium and long term.
Social Protection to Expand Services and Improve Quality of Life
On services and social protection, the circular calls for allocating the necessary funds to expand health insurance coverage, support the National Aid Fund, finance social care and protection programs, and provide economic empowerment for beneficiary families. It also includes support for education, human-resource development, teacher training, and the expansion of inclusive education and early childhood education.
The priorities also include providing free school transportation, supporting strategic commodities, maintaining bread and cooking gas cylinder prices, and securing strategic reserves of wheat and barley. Funds will also be allocated for medical treatment, medicines and medical supplies, as well as cancer treatment.
These measures reflect an effort to strengthen the social dimension of fiscal policy, ensuring that efforts to stimulate growth and investment are accompanied by a stronger social safety net capable of supporting eligible groups and improving access to essential services.
Fiscal Discipline: Balancing Spending and Sustainability
Alongside the expansionary measures, the circular calls for continued rationalization and control of public expenditure, stronger domestic revenues, and reductions in the primary deficit and public debt as a percentage of GDP. It also calls for accelerating the implementation of projects financed through grants and international assistance and directing available resources toward development programs and projects of priority.
The circular also requires ministries, departments and government units to prepare their 2027–2029 budgets within specified financial ceilings, update their strategic plans and link government programs to measurable performance and outcome indicators. This is intended to improve spending efficiency and connect allocations to development objectives and services provided to citizens.
The ability of the 2027 budget to achieve its objectives will ultimately depend on the government’s success in turning financial allocations into completed projects and tangible economic results. This requires balancing growth stimulation and improved living standards with the preservation of fiscal stability, while ensuring that positive economic performance benefits citizens and productive sectors.
Economic expert Mousa Al-Saket said the assumptions underpinning the budget appear largely reasonable and take into account regional uncertainty, geopolitical tensions and their impact on trade, energy, transportation, investment and tourism.
He stressed the importance of not viewing Jordan’s geographical location solely as a source of risks, but also as an opportunity to strengthen the Kingdom’s role as a regional hub for industry, trade and logistics and to capitalize on reconstruction opportunities in the region.
Al-Saket emphasized that the national economy has the fundamentals needed to achieve stronger performance, particularly if Jordan succeeds in stimulating domestic and foreign investment, reducing production costs, strengthening the competitiveness of national industry and increasing exports.
Source: Al-Ghad
