The draft 2027 budget law poses an equation worth reading from both sides: how the government collects its revenues, and where it spends them. Domestic revenues are estimated at JD10,925 million, compared with JD9,846 million in the revised 2026 estimate. Meanwhile, public spending rises from JD12,756 million to JD13,735 million. These figures mean the government is betting on growth in its domestic resources to fund expanded spending, with a limited reduction in the deficit.
اضافة اعلان
Public revenues rest on two main sources, domestic revenues and external grants. Grants for next year are estimated at JD784 million, compared with JD851 million in the revised estimate for the current year. Total public revenues reach JD11,709 million. Domestic resources therefore bear the largest share of financing the budget, and collecting them at the estimated level becomes a basic condition for meeting the commitments included in the budget.
The estimated 11% increase in domestic revenues, compared with the revised 2026 estimate, deserves close monitoring. Real economic growth is put at 3.1%, and nominal growth at 5.5%. This gap makes the efficiency of collection and the growth of revenue-generating activities decisive factors. It also calls for regular monitoring to show how close collection is to the target, so that spending management can adjust early to the results.
On the other side, spending is split between JD12,025 million in current expenditure and JD1,710 million in capital expenditure, compared with JD11,306 million and JD1,450 million respectively in the revised 2026 estimate. This distribution reflects the continued weight of current commitments, alongside expanded investment allocations. It places the government under pressure to combine the steady delivery of services with faster implementation of projects that have a real economic impact.
The details of current spending show where a significant share of the money goes. Allocations for wages and salaries total JD2,272 million, pensions JD1,922 million, military spending JD3,519 million, and debt interest JD2,360 million. The budget estimates also include a monthly increase of JD30 for eligible groups earning less than JD600, at an annual cost of JD260 million. This is split into JD50 million for civilians, JD100 million for the military and JD110 million for retirees. The increase supports the incomes of the target groups and their ability to cover daily needs, although the scale of the improvement in living standards remains tied to price levels and to the obligations borne by the households that benefit from the monthly increase.
Social protection and essential services continue, with JD171 million allocated to subsidising wheat and barley, JD80 million to gas cylinders, JD280 million to the National Aid Fund, and JD124 million to cancer insurance. Allocations for medicines and vaccines rise to JD185 million, and education operations to JD100 million. The direct impact of these items depends on services and support reaching beneficiaries on a regular basis.
On capital spending, JD504 million goes to projects under the Economic Modernisation Vision. These include JD60 million for the national carrier, JD33 million for the Al-Reesha gas project, JD51 million to support tourism, and JD22 million for public transport. It is important to direct spending towards needs that affect production and service costs, and that help gradually expand economic activity and job opportunities.
Ministerial capital allocations total JD671 million, including JD151 million for education, JD81 million for health and JD116 million for public works, along with JD225 million for municipalities within capital spending. These are allocations in the general budget, and their value remains tied to what they deliver in schools, facilities, services and projects, and to the ability of implementing bodies to keep to their timetables and costs.
Domestic revenues' coverage of current spending improves to 90.9%, compared with 87.1% in the revised 2026 estimate. This is a positive trend towards strengthening domestic financing. The economic value of the budget, however, depends on meeting revenue targets, carrying out projects and running services efficiently. Higher allocations create an opportunity for improvement, but turning that opportunity into tangible results requires management that tracks implementation and links spending to its impact.
