Budget deficit in Jordan
According to PETRA, the Cabinet held a special session on Friday to discuss the budget deficit, which resulted from the increase of oil derivatives' prices in the world.
The Cabinet stressed, in a statement issued after the session, the importance of dealing with this deficit through partially lifting the government's subsidy on oil derivatives and supporting projects, which contribute to improving services provided to citizens and achieving the sustainable development.
The government's measures came to face the 2005 budget's deficit, which is expected to reach JD 720 million, especially that each day of delay in raising fuel prices costs the Treasury JD 600,000.
The Cabinet decided to cut capital expenditures by 20 per cent with a view to reduce the deficit.
The Cabinet also adopted several measures to reduce the effect of lifting the subsidy on limited- income citizens.