Net public debt at end of 2010 climbs to JD11,462.8 million

AMMAN (JT) – The Kingdom’s net public debt increased at the end of 2010 by around JD1,802.8 million, reaching JD11,462.8 million compared with JD9,660 million at the end of 2009, according to the Ministry of Finance annual bulletin.

The figure constituted 58.7 per cent of the gross domestic product (GDP)last year compared to 59.4 per cent of the 2009 GDP.

Taking foreign assistance into account, the government reduced the state budget deficit for 2010 by around 492.9 million to JD1,046.4 million compared with JD1,509.3 million for 2009.

It should be noted that allocations for the government independent institutions were only submitted during the last month of the year.

This means that a large tranche of the allocations were returned to the ministry hindering the institutions’ operations in terms of employment, project expansion or the launch of new projects.

Excluding foreign assistance, the deficit reaches JD1,448.1 million compared with JD1,842.7 million, the ministry’s bulletin indicated.

In 2010, domestic revenues and foreign assistance, in their aggregate, amounted to around JD4,662 million compared with JD4,521 million, an increase by JD140.7 million.

Domestic revenues rose by JD72.3 million from JD4,260.1 million to JD4,187.8 million.

The rise was the outcome of an increase in total tax revenues and pension appropriations by JD105.4 million accompanied by a drop by around JD33.1 million in other revenues, according to the bulletin.

The increase was attributed mainly to higher tax on goods and services which rose by around JD229.5 million coupled with the drop in the taxes on real-estate sale, other financial transactions, income tax and other reduced levies on profit, totalling around JD149.5 million.

A total of 80 per cent of the tax increase came from sales tax, an economist told The Jordan Times.

Meanwhile, additional tax revenues dropped by around JD44.8 million because this tax was cancelled under a recent amendment to the income tax.

Also, total expenditures dropped by 322.3 million in 2010 to JD5,708.2 million compared with JD6,030.5 million in 2009.

The decline was the result of an increase in current expenses by JD159.4 million accompanied by a drop in capital expenditures by JD481.7 million, the ministry’s bulletin concluded.

jordantimes