When the government allocates more than one billion
Jordanian dinars for subsidies in the 2026 state budget, it is legitimate to
ask whether these funds truly reach those who need them most. Do these
substantial allocations achieve their intended economic and social goals, or
are we still caught in a cycle where public finances carry a rising subsidy
bill without effectively targeting beneficiaries?
اضافة اعلان
Figures from the 2026 General Budget Law show that total
direct and indirect government subsidies amount to JOD 1.03 billion, compared
to JOD 916 million in 2025 an increase of JOD 114 million, or 12.4 percent.
This confirms that the government continues to bear significant financial
pressure to maintain the social safety net and support essential services.
A closer look at how these subsidies are distributed
highlights the scale of fiscal commitments. The National Aid Fund receives JOD
280 million in cash assistance, up from JOD 265 million last year. Support for
municipal development rises from JOD 180 million to JOD 210 million, while
subsidies for household gas cylinders increase from JOD 63 million to JOD 80
million. Funding for public universities also rises slightly from JOD 75
million to JOD 80 million, and allocations for the Student Support Fund increase
from JOD 30 million to JOD 35 million.
At the same time, JOD 171 million is allocated to subsidize
basic commodities such as wheat and animal feed, down from JOD 180 million in
2025. The budget also earmarks JOD 124 million for cancer treatment, while
medical treatment and exemptions are allocated JOD 50 million, a significant
decrease from JOD 123 million in the previous year.
The core issue is not the size of the subsidy bill itself,
but the mechanism through which it is distributed. In Jordan, subsidies still
reach almost everyone, with limited distinction between those who are eligible
and those who are not. Wealthier households benefit alongside low-income
families, and in some cases, non-Jordanians and residents also benefit due to
the universal nature of subsidized goods and services. This raises a
fundamental question of efficiency in public spending: how can subsidies be considered
effective if the true beneficiaries cannot be accurately identified?
Ironically, these large allocations come at a time when
public finances are under increasing strain. The state budget continues to face
a deficit exceeding JOD 2.3 billion, while more than one billion dinars are
still directed annually toward subsidies. This makes it clear that the real
debate is not about increasing or reducing subsidies, but about restructuring
them to ensure greater fairness and efficiency.
Another challenge lies in public trust. Successive
governments have struggled to build confidence in cash assistance programs.
Many citizens have found past experiences unsatisfactory, whether due to
complex eligibility procedures, delays in payments, or inconsistent program
continuity. In some cases, beneficiaries were required to undergo lengthy
bureaucratic processes for relatively modest assistance, creating skepticism
about the effectiveness of such programs.
Any meaningful reform of the subsidy system must begin with
the creation of a comprehensive and accurate socio-economic database. Such a
system would allow the government to clearly distinguish between eligible and
ineligible recipients, as well as between vulnerable and financially secure
households. It is no longer justifiable for public funds of this magnitude to
be distributed based on estimates or incomplete data.
Equally important is modernizing delivery mechanisms.
Subsidies should be disbursed through efficient electronic and banking systems
that ensure direct and transparent transfers to beneficiaries, without
unnecessary procedures or administrative burdens. More importantly, subsidy
programs should be sustainable and tied to real economic indicators such as
inflation, income levels, and cost of living, rather than being temporary
measures that shift with changing political or fiscal conditions.
Subsidies remain a social and economic necessity, and there
is no dispute about their importance. However, maintaining universal subsidy
systems is increasingly difficult to justify in light of current fiscal
pressures. Ultimately, the issue is not the size of the subsidy bill, but its
direction. Only when subsidies are accurately targeted can every dinar of
public money be said to reach its rightful place.
