Amman – As discussions on the 2027 General Budget Bill approach between the executive and legislative branches, higher capital expenditure is emerging as one of the most significant changes in the structure of government spending. The shift reflects growing interest in expanding public investment and strengthening its role in stimulating economic growth and increasing the productive capacity of the national economy.
The initial outlines of the draft budget indicate that capital expenditure is set to rise by approximately 18% compared with its revised estimate for 2026, reaching around JD 1.7 billion. This growth rate exceeds that of current expenditure, creating scope for increased spending on development projects, infrastructure, and productive and service sectors.
Economists believe the increase carries implications beyond the size of the financial allocations. It reflects a move towards strengthening the investment role of the General Budget and addressing the longstanding imbalance caused by limited capital spending. This could help stimulate economic activity, expand employment opportunities, improve productivity, and enhance the investment environment.
In statements to Al Ghad, they stressed that achieving the expected returns from this increase will depend on the efficient allocation of spending, faster project implementation, alignment with actual development priorities, and ensuring that the benefits of development are distributed more evenly among governorates.
JD 1.7 Billion for Development and Strategic Projects
The Cabinet recently approved the 2027 General Budget Bill and referred it to the House of Representatives to complete the required constitutional procedures before the end of this year.
The initial outlines of the draft show capital expenditure rising by approximately 18% compared with its revised estimate for 2026, reaching around JD 1.7 billion. The increase exceeds the growth rate of current expenditure, reflecting a government approach aimed at strengthening the investment component of public spending.
The government has also reaffirmed its commitment to allocating the necessary funds to meet service and development needs across the governorates, based on priorities identified during Royal visits and Cabinet meetings held in various parts of the Kingdom. This is intended to ensure that government investments are directed towards actual needs.
In the same context, the government plans to 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. Both projects are considered important for strengthening water and energy security and reducing reliance on external sources.
Mansour: Higher Capital Spending Aims to Address Previous Budget Imbalances
Former Minister of State for Economic Affairs Yousef Mansour said that Jordan’s general budgets had suffered for many years from an imbalance reflected in modest capital expenditure and persistently low investment allocations. Economists had repeatedly called for this issue to be addressed because of its negative impact on the national economy, limiting economic activity and productivity.
Mansour added that the current government has introduced a notable shift in this approach by increasing capital expenditure in this year’s budget and committing to implementing the allocated funds. It is continuing along the same path in the draft budget for next year.
He stressed that the increase reflects the government’s seriousness in moving ahead with major development projects, several of which began implementation in recent months.
He described capital expenditure as an investment in future generations, offering opportunities to improve infrastructure, enhance citizens’ living conditions and public services, improve the business environment, and strengthen the country’s appeal to investors.
Regarding the expected economic impact, Mansour explained that rising capital expenditure helps stimulate economic activity and create additional job opportunities, positively affecting growth rates and living standards.
He also noted that developing infrastructure through public investment is one of the factors that attracts investment, as it sends positive signals about the national economy’s efforts to improve its foundations and strengthen investor confidence.
Alawneh: Capital Spending Supports Sustainable Growth and Economic Competitiveness
For his part, Jordanian Businessmen Association President Ayman Alawneh said that the approximately 18% increase in capital expenditure outlined in the initial draft budget, compared with its revised estimate for 2026, reflects a government direction towards strengthening investment spending and expanding the base of development projects. This would help stimulate economic activity and improve the efficiency of infrastructure and public services.
Alawneh said that capital expenditure growing at a faster rate than current spending carries important economic implications, most notably strengthening the role of government spending in supporting sustainable growth and gradually shifting towards more productive expenditure. Its impact could be reflected in domestic investment, an improved business environment, job creation, and greater competitiveness for the national economy.
He added that the importance of this approach should not be measured solely by the size of financial allocations, but also by how efficiently they are directed, adherence to clear project implementation schedules, and the achievement of tangible economic and development returns.
He pointed out that capital spending is an important tool for stimulating private investment, strengthening public-private partnerships, and creating opportunities to launch more productive projects.
Alawneh stressed the importance of increasing allocations for education, healthcare, and public works, alongside municipal development projects and improvements to infrastructure and essential services across the governorates. He said investment in these sectors helps improve quality of life, raise productivity, and achieve more balanced development.
He also highlighted the importance of the government’s commitment to allocating the resources needed to meet the development and service requirements of the governorates, based on priorities identified during Royal visits and Cabinet meetings. This would ensure that public investments address actual needs and promote fairness in the distribution of development benefits.
Regarding strategic projects, Alawneh emphasized the importance of continuing to implement major national initiatives, particularly the National Water Carrier Project and the development of the Risha Gas Field, given their role in strengthening water and energy security.
He stressed the need to direct capital investments towards developing domestic and renewable energy sources and strengthening infrastructure in the water and energy sectors. Such efforts would help reduce reliance on external sources and improve the Jordanian economy’s ability to withstand geopolitical disruptions and fluctuations in global markets.
He also called for directing part of capital expenditure towards productive sectors with high added value and the capacity to generate jobs and attract investment. These include industry, agriculture, tourism, transport, logistics, and information technology, alongside supporting small and medium-sized enterprises and developing digital infrastructure.
Alawneh emphasized that achieving the intended economic impact requires improving the management of government projects, accelerating implementation and completion procedures, and developing monitoring and evaluation mechanisms. These measures would help prevent project delays and cost overruns and ensure that financial allocations are converted into productive assets and services that directly benefit the economy and citizens.
He concluded by stressing that the success of this approach depends on aligning capital expenditure with the priorities of the Economic Modernisation Vision and strengthening the private sector’s role as a key partner in development. This would support economic growth, expand employment opportunities, and enhance the Kingdom’s financial and economic sustainability.
Awad: Directing Investment Towards Priorities Determines Development Returns
Meanwhile, Ahmad Awad, Director of the Phenix Center for Economic and Informatics Studies, said the government’s decision to increase capital expenditure in the 2027 draft budget by approximately 18%, bringing it to around JD 1.7 billion, reflects an interest in strengthening the General Budget’s development role and stimulating economic activity, particularly as the increase exceeds the growth rate of current expenditure.
Awad explained that the importance of public investment lies in its ability to generate employment opportunities, increase demand for the products and services of local businesses, and improve the infrastructure that the private sector needs to expand and increase production.
He noted that investment in education, healthcare, transport, and water helps ease financial burdens on households, raise productivity, and expand opportunities for economic participation, particularly among women and young people and in governorates with less access to services.
He said investment priorities should focus on strengthening water security and reducing water losses, developing affordable public transport, improving schools and healthcare facilities, and investing in energy sources that help lower production costs and enhance supply security.
Awad highlighted the need to strike a balance between major strategic projects and local initiatives that address citizens’ immediate needs, support small and medium-sized enterprises, and reduce development disparities among governorates. He said this should be based on clear criteria that take into account service gaps and poverty and unemployment levels.
To ensure that the increase in capital expenditure produces a tangible impact, he called for preparing projects that are ready for implementation, supported by economic and social feasibility studies, realistic timetables, and guarantees of regular funding.
He also stressed the importance of prioritizing the completion of stalled projects and providing the necessary allocations for operations, maintenance, and staffing. This would ensure that results go beyond the construction of facilities and translate into actual, sustainable services that citizens can benefit from.
Awad emphasized that the main measure of successful capital spending is not simply the amount of money allocated or the percentage spent, but the extent of improvement citizens experience in their living conditions, education, healthcare, and transport, as well as the creation of sustainable jobs and stronger productive capacity.
He added that this requires greater accountability for the institutions concerned, focusing on the quality of results and fairness in their distribution, alongside monitoring spending and completion rates to ensure that announced development objectives are achieved.
Implementation and Spending Efficiency: The Real Test for New Allocations
The anticipated increase in capital expenditure places the 2027 draft budget before an economic and development test linked to the government’s ability to convert financial allocations into completed projects, productive assets, and sustainable services.
The economic impact of capital spending is not limited to injecting funds into projects. It also depends on the added value they generate, their ability to stimulate productive sectors, create jobs, improve services, and strengthen the private sector’s capacity to expand and invest.
While the increase in allocations represents a step towards expanding public investment, implementation efficiency, the selection of priorities, adherence to project timetables, and the distribution of projects according to the development needs of the governorates will remain decisive factors in determining the actual returns.
Accordingly, the main challenge facing the 2027 budget is not simply raising the ceiling for capital expenditure to around JD 1.7 billion, but ensuring that this spending translates into more sustainable economic growth, higher productivity, broader employment opportunities, and tangible improvements in public services and citizens’ quality of life.
Source: Al Ghad Newspaper
