Final financial results for 2025 reveal that actual figures closely aligned with the assumptions and estimates outlined in the General Budget Law. This marks a rare occurrence in nearly two decades where actual outcomes so narrowly track projected figures, reflecting a clear commitment to the budget law and a governmental determination to pursue disciplined fiscal reform based on realistic estimation and precise execution.
اضافة اعلان
Data shows that domestic revenues increased by 6.6% in 2025, reaching JOD 9.312 billion, compared to JOD 8.735 billion in 2024. This growth is attributed to a 6.8% increase in tax revenues, driven by a rise in General Sales Tax (GST) collections, customs duties, and real estate sale taxes by 9.9%, 2.2%, and 4%, respectively. Additionally, non-tax revenues grew by 6.2%.
This improvement comes amid the expansion of the tax base and enhanced collection efficiency, supported by the widespread adoption of the National Invoicing System. The system's volume quintupled in 2025 compared to previous years since its 2022 launch, contributing to higher compliance levels and improved quality of tax and customs data.
Total public revenues, including foreign grants of JOD 684 million, reached approximately JOD 9.996 billion in 2025, a 5.9% increase over 2024.
Conversely, total public expenditure rose by 6.2% to JOD 12.252 billion. Notably, capital expenditure recorded its highest execution rate in recent years, reaching JOD 1.4 billion—a 20% increase over 2024. The execution rate stood at 95% of the estimated allocations in the Budget Law, a significant leap from the 68% recorded in 2024, reflecting a substantial improvement in spending efficiency and the accelerated implementation of development projects.
Current expenditure amounted to JOD 10.852 billion, up 4.7% from 2024. Consequently, the coverage ratio of current expenditure by domestic revenues improved to approximately 86% in 2025, up from 84% in 2024, reinforcing the path toward increased self-reliance in financing current obligations.
The budget deficit after grants stood at JOD 2.256 billion, roughly JOD 2 million lower than the target deficit set in the 2025 Budget Law, indicating fiscal discipline within announced estimates.
Regarding the settlement of arrears accumulated over years, the government paid JOD 320 million in 2025 and JOD 300 million in 2024. A further JOD 300 million is slated for payment in 2026, bringing the total settlement to JOD 920 million for the 2024–2026 period under a clear plan to clear pre-2024 obligations.
On public debt management, the government redeemed Eurobonds due in the first half of 2025 ahead of schedule using concessional loans instead of commercial markets, yielding annual savings of approximately $40 million. Bonds due in 2026 were also settled early through low-interest financing arrangements. Additionally, a new Eurobond issuance was completed at a 5.75% interest rate for a seven-year term, marking the lowest historical margin compared to previous issuances.
The public debt balance (excluding holdings by the Social Security Investment Fund) reached JOD 36.237 billion, representing 82.8% of the estimated GDP for 2025. Debt levels are expected to remain consistent with late 2024 figures, signaling relative stability.
The IMF Debt Sustainability Analysis indicates that public debt remains under control, with the government maintaining the capacity to meet its medium- and long-term obligations. This aligns with the strategic goal of reducing the debt-to-GDP ratio to 80% by 2028.
(Petra)
