Российско-Иорданский Деловой Совет

2011 budget to see more capital spending

AMMAN (JT) – Finance Minister Mohammad Abu Hammour on Sunday said that the target deficit in the 2011 state budget is forecast to drop to 5 per cent of gross domestic product (GDP).

As he presented the initial budget to Cabinet members during its meeting yesterday, the minister said that the target deficit comes in line with a set reform programme for the years 2011-2013,

Abu Hammour has previously said that Jordan was making better-than-expected progress towards its fiscal goal of cutting its budget gap to 6.3 per cent of GDP in 2010 by undertaking some of its toughest spending cuts in years.

The budget deficit in 2010 was forecast at JD1 billion, down from the record JD1.5 billion last year. The 2011 budget, he told the Cabinet, will witness a drop in operational expenses by 15 per cent and an increase in capital expenditure by 16 per cent, as compared to the current year.

He said that the government will pay more attention to the education and social welfare sectors “because they directly touch on the lives of citizens all over the Kingdom”, noting that in 2010, capital funds allocated for these sectors increased by 24 per cent compared to 2009.

The official added that a budget statement will be ready within two days before the budget is finalised for Cabinet endorsement and then it will be forwarded to the new Parliament, to be elected on November 9.

The 2011 budget sets aside funds for a railway mega-project that will connect Jordan with neighbouring countries, according to Abu Hammour.

jordantimes

Russian-Arabic Business Council

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