Jordanian MPs pass kingdom’s ‘most difficult budget’

Jordanian MPs pass kingdom’s ‘most difficult budget’

AMMAN: Jordan's lower house of parliament on Sunday approved what has been described as the most difficult budget in the kingdom's history.

The draft budget law for 2021 and the budgets for independent public institutions were backed by a majority of MPs as the country attempts to rebuild its economy from the coronavirus pandemic.

The government submitted the law to MPs last month with an estimated post-foreign aid deficit of 2.06 billion Jordanian dinars ($2.89 billion), or 6.5 percent of gross domestic product (GDP), compared with 2.16 billion dinars in 2020.

Domestic revenues are estimated at around 7.8 billion dinars before foreign grants, which are expected to reach 577 million dinars, down from the 851 million dinars for 2020.

The value of total expenditure in the 2021 budget is expected to reach 9.93 billion dinars or 31.2 percent of GDP, compared with 9.37 billion dinars or 30.6 percent of GDP in 2020.

A total of 111 MPs of the 130-strong chamber took their turn to present their comments and concerns about the bill.

In response, Finance Minister Mohamad Al-Ississ renewed the government's pledge not to impose any new taxes during 2021. But he warned that increasing public revenues as demanded by some MPs "requires some sacrifices,