Jordan increases effort to slash budget deficit
Jordan aims to cut its budget deficit by about a third in 2013 to curb in the wake of soaring fuel import costs and the impact of the Arab Spring.
Finance ministry sources are quoted by Reuters as saying that the draft 2013 budget aimed to reduce the 2013 deficit to 5.4 per cent of gross domestic product (GDP) from 7.9 per cent last year.
The ministry sources reportedly said that the draft 2013 budget has been set at JOD 7.45 billion ($10.5 billion) and emphasises fiscal prudence to reduce the deficit to JOD 1.31 billion from JOD 1.76 billion forecast for 2012.
The latest 2013 estimate of state expenditure includes JOD 850 million of grants from donor countries, which are traditionally used to cover some of the budget shortfalls.
The sources are quoted as saying 2013 economic growth was expected to be around three per cent, the same as forecast for 2012.
The 2013 budget allocates JOD 6.21 billion in current state expenditure, mainly public sector pay, and puts aside JOD 1.24 billion for capital spending, the sources are quoted by Reuters as saying.
- RIP: King Abdullah leaves behind profound legacy for the Saudi Economy
- Impetus from within: why the Arab World needs a very Arab 'Marshall Plan'
- 'Fiscal juggling': just how many economic priorities will Saudi Arabia's new King have to focus on?
- Despite Erdogan's 'harsh rhetoric', Turkish-Israeli is still booming
- UAE is best MidEast economy for attracting talent, index says