Cabinet approves 2023 budget draft law

Budget estimated to be JD11.4 billion — finance minister

1. Ississ
(File photo: Ameer Khalifeh/Jordan News)
AMMAN — The Cabinet approved the draft general budget law for the fiscal year 2023, during their session on Wednesday, the Jordan News Agency, Petra, reported. اضافة اعلان

After Wednesday’s session, the draft law will be referred to Parliament.

Minister of Finance Mohamad Al-Ississ and Minister of Government Communications Faisal Shboul announced the details of the draft law during their press conference held Tuesday at the Ministry of Finance.

At the conference, Ississ stated that the 2023 budget is estimated to be JD11.4 billion. He added that the inflation rate for next year is expected to reach 3.8 percent, “one of the best rates in the world,” he said, according to Al-Mamlaka TV.

Ississ said that real GDP in 2023 will grow "at the same rate as 2022, which is 2.7 percent," adding that "the nominal growth rate is 6.6 percent".

The current account deficit of the balance of payments as a percentage of GDP will "reduce" from 7.9 percent to 6.1 percent, according to the finance minister.

Public revenues are expected to reach JD9.6 billion in 2023, he said, a 7.4 percent increase from 2022, and a 9.6 percent increase from the 2022 recalculation.

He added that domestic revenues will rise to “JD8.8 billion, an increase of 10.4 percent over the year 2022.” Tax revenues will rise 11.7 percent, reaching JD6.6 billion, he said, without raising existing or levying any new taxes of fees.

The income tax will rise by 14.4 percent due to tax department efforts to combat tax evasion and tax avoidance, said Ississ.

Non-tax revenues will rise to JD2.1 billion, an increase of 6.6 percent, which is the same as the nominal growth rate of the economy in 2023, he said.

External grants are expected to reach JD802 million, he said, an increase of 0.8 percent from 2022.

Ississ noted capital spending will maintain at a rate close to the ratio this year and that allocations to implement the Economic Modernization Vision will be close to JD355 million.
The current account deficit of the balance of payments as a percentage of GDP will “reduce” from 7.9 percent to 6.1 percent.
Meanwhile, allocations for the administrative reform plan in the 2023 budget will reach JD40 million, he said.

“In 2023, the primary budget deficit will be reduced from 3.4 percent to 2.9 percent," he said, noting that there will be a similar decrease in the public debt as there was this year.  

He credited this decrease to efforts to combat tax and customs evasion and avoidance.

On Wednesday, the Cabinet approved a draft law amending the Real Estate Sale Tax Law with the aim of encouraging investment in the real estate and housing sectors. 

Under the 2023 budget draft law, the real-estate sale tax rate was reduced to 3 percent instead of the current 4 percent, and the Department of Lands and Survey was approved to refund the real estate sale tax collected for incomplete transactions.

The bill also exempts from real estate sales tax transactions carried out murabaha, an Islamic sales contract offered by Islamic banks, and other financial institutions conducting similar transactions.

The Cabinet also approved a draft law amending the Jordanian Nationality Law for 2022 to align texts related to regaining nationality. Under the new amendments, Jordanian women married to foreigners who renounced their Jordanian citizenship and acquired their husbands’ nationality through marriage are granted the right to regain their Jordanian nationality. Currently, they are only able to regain their citizenship in the event of divorce.

The Cabinet also approved an amendment to the Professional Work Regulation Law, with the intention of simplifying commercial transactions to support the sector. The amendment also empowers the Ministry of Labor to carry out its duties in this context.

Jordan's Stakeholders’ Strategy for Land Governance and Management for 2022–2030 was also approved.

The amendment aims to help ministries, government institutions, international organizations, and civil society organizations launch and engage in constructive dialogue to create a roadmap for transparent land governance methods.

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