Jordan budget is largest recipient of US cash support

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(Design: Jordan News)
AMMAN — A recently published report issued by the US Congressional Research Center shows that the cash transfers provided by the US to Jordan are the largest of the budget support granted to any recipient of US foreign aid worldwide, according to media outlets.اضافة اعلان

The report indicates that the US provides economic aid to Jordan in order to support the budget (cash transfer), USAID programs in Jordan, and loan guarantees.

It says that US cash assistance is being provided to help the Kingdom pay off foreign debts, support Syrian refugees, and lower the cost of imported fuel. US budget support (excluding military aid) to Jordan represents 6 percent of the Kingdom’s total annual budget.

The report states that the US is one of Jordan’s major partners, and that the two countries have cooperated on a number of regional and international issues.

It also indicates that US officials frequently express their support for Jordan, noting that US assistance has helped Jordan address serious weaknesses, both internal and external, and that the ongoing instability in neighboring Syria and Iraq increases Jordan’s strategic importance to the US.

It states that Jordan has been receiving more than $1.87 billion annually in additional military aid since the fiscal year 2015, channeled through the Ministry of Defense’s various security assistance accounts.

US aid to Jordan represents more than 40 percent of the total official aid the Kingdom receives annually, the report adds.

For the fiscal year 2023, the US President Joe Biden’s administration has requested $1.45 billion in total bilateral aid, making Jordan the second-largest targeted recipient of annual US foreign aid.

Israel is the largest recipient of US aid in the world, followed by Jordan. However, Jordan comes first in terms of US aid directed to support the budget.

Last September, the US and Jordan signed the fourth memorandum of understanding governing US foreign aid to Jordan. The seven-year agreement (FY2023–FY2029) commits $1.45 billion in annual economic and military assistance to Jordan.

The report says: “Compared to the previous memorandum of understanding, this fourth memorandum of understanding is higher by 13.7 percent annually and lasts for seven fiscal years instead of five years and represents the largest multi-year US foreign aid commitment ($10.15 billion over seven years) to the Kingdom.”

It adds that with the rise in global oil prices and the return of international tourism, the Jordanian economy has performed better in 2022 than originally expected. GDP growth for the current year is now expected to reach 2.7 percent (up from the previous forecast of 2.4 percent).

Despite this somewhat more positive outlook, economists remain concerned about Jordan’s sovereign debt burden (114 percent of GDP in 2021).

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