AMMAN — The 2020 draft state budget law saw a rise in domestic revenues to reach JD7.754 billion, registering an increase of 10.4 per cent from the JD7.021 billion reestimated in 2019.  

 

The government referred the draft state budget law for 2020 and budgets of independent public institutions to the Lower House on Thursday which expected 66 per cent of the 2020 revenues to be generated from tax return, 25 per cent from non-tax resources and 9 per cent from grants, the Jordan News Agency, Petra, reported.

 

The deficit in 2020 budget is estimated to reach JD1.247 billion after grants, constituting 3.9 per cent of GDP, up from JD1.215 billion in the re-estimated value for 2019.

 

Before grants, next year’s deficit was estimated at JD2.054 billion, or 6.4 per cent of GDP, compared with JD2.018 billion of the reestimated deficit in 2019, constituting 6.5 per cent of GDP.

 

Foreign grants are expected to reach JD807 million in 2020, nearly the same as the reestimated value in 2019.

 

Revenues generated from income and sales taxes are expected to reach JD207 million and JD591 million respectively. 

 

Tax revenues are expected to increase by JD853 million to JD5.651 billion compared with JD4.798 billion reestimated for 2019. 

 

Meanwhile, non-tax revenues are expected to see a 5.4 per cent drop to JD2.103 billion in 2020, down from the JD2.223 billion reestimated for 2019.

 

Current expenditures are expected to constitute some 85 per cent of the public spending in 2020 with an estimated value of JD8.383 billion, while capital spending is to form 15 per cent with JD1.425 billion.

 

Unveiling the 2020 state budget, Finance Minister Mohamad Al-Ississ said that the law took into consideration the government’s plans to stimulate investments and economic growth rates through increasing capital expenditure by 33 per cent.

 

Al-Ississ said that the government increased the allocations for the national aid fund by JD30 million in the budget law to reach JD146 million.

 

The minister also said that the government has informed a delegation from the International Monetary Fund that it will not incresase taxes and will move ahead with its endeavour to lower unemployment rates and cut production costs.