The 2026 budget comes at a crucial juncture for Jordan’s Economic Modernisationn Vision, which aims to guide financial and investment planning over the next decade. The budget is far more than a ledger of revenues and expenditures it is a reflection of government priorities and a roadmap for economic transformation. How these priorities are translated into actionable programs will determine whether Jordan achieves sustainable growth or remains trapped in conventional patterns of fiscal management.

 

For members of parliament, the role in examining the budget should extend beyond debating numbers. The key question is whether the budget aligns with the modernisationn vision. This vision rests on eight growth drivers, emphasizing sectors such as high-value industries, innovation and entrepreneurship, tourism and future services, agriculture and food security, energy and environment, and logistics. Parliamentarians must ask whether the budget allocates resources strategically to these sectors and whether measurable outcomes are built into the planning to ensure that public spending leads to real economic change.

 

A second critical issue is the fiscal deficit, which remains a major challenge. The aggregated deficit for 2026 is projected at approximately JD2.8 billion, including JD2.125 billion from the general budget and JD 671 million from independent government units. MPs should look closely at the sources of this deficit: Is it driven by growing operational expenditures, underperforming revenues, or an overextension of capital investments without adequate funding? Understanding the origins of the deficit is essential for crafting policies that gradually reduce it while preserving fiscal sustainability. A transparent medium term fiscal plan is necessary to prevent escalating debt and to safeguard the government’s ability to invest in priority sectors.

 

Closely linked to this is capital expenditure, a major instrument for growth. Although the 2026 budget increases capital spending to JD1.7 billion, the real question is not the allocation but the impact. Capital expenditure loses its developmental value if it is diverted to operational costs or salaries. MPs should ensure that funds are directed to productive projects with clear economic returns, aligned with the modernisationn vision, and monitored through measurable performance indicators. Only then can capital spending contribute meaningfully to long-term growth and competitiveness.

 

Another issue often overlooked in budget discussions is government arrears, including obligations to contractors. These arrears do not always appear clearly in the official budget, yet they represent real financial liabilities. Addressing them transparently enhances fiscal credibility, supports the private sector, and ensures that public investment projects proceed without disruption.

 

Finally, while Article 112 of the Constitution limits MPs’ ability to make substantive changes to the budget—allowing only reductions—the oversight role remains crucial. Parliamentarians must focus on asking the right questions: Does the budget enable the economy to transition to a higher growth trajectory, or does it merely perpetuate traditional fiscal patterns? The answers to these questions will determine whether the 2026 budget serves as a bridge to Jordan’s economic future or remains a document of missed opportunities.

 

Raad Mahmoud Al-Tal – Department of Economics, University of Jordan