Jordan under the pressure of financial deficit and accumulation of domestic and foreign debts

According to the International Economic Group of Fars News Agency, citing Al-Arabi Al-Jadeed, Jordan’s draft budget for next year shows that the government intends to spend 8.8 billion dinars ($12.4 billion) to cover outstanding financial obligations, including covering the budget deficit, paying installments of domestic loans and Borrow foreign and dollar bonds.

According to the draft of this budget, Jordan’s borrowing amounts in the next year to pay the budget deficit, the due installments of the foreign debt, the amortization of domestic debt and local bonds in dollars and the payment of local debt installments in dollars, the advance payments of the Ministry of Finance to the Water Organization and the installments of the domestic loan are due. It will be the organization of water and loans taken to clear the arrears of the government.

* High debt

Economic experts believe that the tendency of the Jordanian government to borrow more in the next year will lead to an increase in the amount of public debt of this country, which is close to 45 billion dollars, and with the annual reduction of huge sums to pay installments of domestic and foreign debts and interest from debt, the burden It imposes a huge burden on the public budget.
According to the available information, the borrowed amounts will be allocated to cover the expected public budget deficit in Jordan in the amount of 1.9 billion dinars, and around 600 million dinars will be allocated to pay installments of foreign loans in addition to other items. (1 Jordanian dinar is 1.4 dollars) .
Also, the Jordanian government intends to pay 233 million dinars in installments of the government arrears loan and allocate 4.3 billion dinars to settle the domestic debt and about 1.4 billion dinars to settle dollar bonds.
Although the Jordanian government has to borrow to pay its financial obligations, especially debt installments and interest, dollar bonds and Eurobonds, experts emphasize the importance of focusing on reducing borrowing in the coming years.
Experts say the Jordanian government should work to increase local revenues by attracting and stimulating investments, far from imposing new taxes or duties on citizens and economic sectors, because the tax burden is already very high and has exceeded the usual ceilings.
* Economic difficulties
Mazen Marji, an economic expert, says: Jordan’s economy is suffering from severe problems that have aggravated the financial deficit and internal and external debts. Considering this issue, effective measures should be taken to increase the investment rate and eliminate tax and customs evasion by intensifying the prosecution of fugitives in order to pay their obligations to the treasury.

He stated that borrowing means excessive financial and construction costs on the economy and Jordan’s debts will increase significantly in the next few years. It currently accounts for 117 percent of GDP.
Marji stressed that the high current costs have taken up a large part of Jordan’s public budget, employee salaries and pensions account for more than 50 percent of the public budget, in addition to other sums that go to the social security network, helping the poor. , treatment and support for basic goods such as bread are allocated. Salaries, wages and social security insurance of workers are about 4.8 billion dinars.
The Jordanian government has estimated the next year’s budget to be around 11.4 billion dinars, and the budget deficit will decrease to 1.826 billion dinars after grants, from 3.4 percent to 2.9 percent in 2023.
Jordan’s Finance Minister Mohammad Al-Assas predicts that in 20023 domestic income will grow by 10.4% compared to the estimate of 2022, and domestic production will grow by 6.6% and tax revenues will grow by 696 million dinars or 11.7%, which indicates The impact of measures to fight tax evasion, improve tax management, apply international practices in tax audit and inspection, expand the tax base and increase the voluntary commitment of taxpayers on the other hand.
The Jordanian government says it will not raise or impose any new taxes over the coming year, especially as tax revenues improved by 6.6 percent this year and foreign aid to 802 million dinars for 2023, or 0.8. The percentage has increased from 2022.
Since two weeks ago, several Jordanian provinces have been holding massive protests against the increase in fuel prices, and Jordanian truck drivers have also gone on strike since December 5th, followed by public transport buses and taxis in the Jordanian capital. The actions of the government of this country have not been successful in calming the strike crisis in different provinces.
Protests in the southern provinces of Jordan against the increase in fuel prices led to the death and injury of three police officers. The deputy police chief of Jordan’s “Ma’an” province was killed in these protests.
In a press conference about the protests in this country, Jordan’s interior minister emphasized that while respecting the right to freedom of speech, he does not allow violence in the protests.
The Jordanian government filtered the “Tik Tok” application in this country from today to prevent the publication of images and videos of protests.

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