Complex Made Simple

Jordan’s budget deficit increases to JOD655 billion

Rise mainly result of financing state’s budget deficit and government-guaranteed loans by national electricity and water companies

Jordan’s budget deficit amounted to JOD655.7 million in the first nine months of the current year, compared with JOD561.1m for the corresponding period of 2014, according to official figures.

The increase in the state’s budget deficit was mainly driven by a JOD288m decline in public revenues, the ministry of finance says in a quarterly update.

According to the figures published by Al Ghad, the Kingdom’s public debt edged up by 8.6 per cent in the nine-month period to a total of JOD22.3 billion, comprising 82.2 per cent of gross domestic product.

The ministry said the rise in the country’s debt was a result of financing the state’s budget deficit and government-guaranteed loans by the national electricity and water companies.

The total value of local revenues and foreign assistance reached JOD4.82bn, as against JOD5.11bn for the same period last year, signalling a decline of 5.6 per cent.

Foreign aid plunged to JOD370m by the end of September, compared with JOD634m in the same period last year, the data indicates.

(JOD1 = AED5.17, at the time of publishing)