Second tranche of subsidy support released in Jordan
Jordan has released its second tranche of cash support as replacement for the fuel subsidy reductions.
Nearly 100,000 families [in Jordan] have so far received their cash payments under the second tranche of the targeted fuel compensation to low- and medium-income Jordanians, a government official said Saturday.
The official estimated the number of individuals who benefited from the JD100 million ($141 million) disbursement, which started five days ago, at around half-a-million, indicating that the payment will continue until mid-May.
The overall value of the direct cash compensation is set to cost the budget JD300 million ($424 million), but it would cut the subsidy burden on the Treasury by JD500 million ($707 million) as the generalised subsidy system for fuel products used to cost the government around JD800 million ($1.1 billion), according to official figures.
The new direct financial assistance regime, disbursed over three instalments of JD100 million ($141 million) each, was implemented after the government’s decision to lift fuel subsidies in November of last year.
The decision, which led to a significant rise in prices of key fuel derivatives, was met by protests and riots in several parts of the Kingdom.
Under the currently implemented cash support system, each individual from households that consist of six members or less, and whose income is less than JD800 ($1,131) a month or JD10,000 a year ($15,000), is entitled to JD70 ($100) annually to compensate for the price increases.
Public sector employees, civil and military retirees, Social Security Corporation pensioners and National Aid Fund beneficiaries receive the cash through their bank accounts.
Private sector workers and the unemployed can collect the payments from the Housing Bank, the official told The Jordan Times over the phone on Saturday, noting that the bank’s branches across the Kingdom open from 3:00pm until 7:00pm for this purpose.
Official figures estimate that around 70 per cent of Jordanians are eligible to benefit from the cash support.
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