AMMAN — Minister of Finance Abdul Hakim Shibli on Thursday said that the draft General Budget Law for 2026 was formulated amid mounting global political and economic challenges, including strained international trade relations, rising protectionism, and persistent geopolitical tensions clouding global economic prospects.

 

In response to Senate discussions on the draft budget, Shibli said a series of economic decisions and policy measures had been adopted to stimulate key sectors and reinforce fiscal stability, contributing to improved national economic indicators supported by Jordan’s security and political stability.

 

He highlighted that real GDP growth reached 2.7 per cent and 2.8 per cent in the first and second quarters of 2025, respectively, marking the strongest performance in two years, the Jordan News Agency, Petra, reported.

 

Balanced monetary policy, he added, helped maintain the Jordanian dinar’s stability, contain inflation at among the lowest levels in the region, and preserve citizens’ purchasing power, while the Central Bank of Jordan's foreign reserves rose to a record $24.6 billion.

 

On public finances, the minister said the government successfully contained the budget deficit at around 5.2 per cent of GDP in 2025 and maintained the primary deficit at about 1.9 per cent, despite regional pressures.

 

Measures to replace high-cost borrowing with concessional financing helped curb rising debt servicing costs, with public debt expected to gradually decline to about 83.4 per cent of GDP in 2025, excluding Social Security Investment Fund holdings.

 

Shibli also pointed to improvements in key economic sectors, citing foreign direct investment reaching about $1 billion in the first half of the year, tourism revenues exceeding $7 billion by the end of November, a 9.1 per cent rise in national exports during the first nine months, and remittances from Jordanians abroad reaching around $3.7 billion by the end of October.

 

Looking ahead, the 2026 budget prioritises translating the second phase of the Economic Modernisation Vision into tangible results for citizens, with major strategic projects set to begin early next year in partnership with the private sector and scheduled for completion between 2028 and 2030, he added.

 

Flagship projects include the National Water Carrier, the Aqaba–Shidiyah/Maan–Ghor Al Safi railway, the Risheh gas pipeline, and initiatives in public transport, health, energy, and infrastructure, with a total investment exceeding $10 billion, primarily from external sources.

 

Capital spending is estimated at about JD1.6 billion, including nearly JD400 million allocated to Economic Modernisation Vision projects.

 

The budget also earmarks funds for major investments in education and health, including new schools and hospitals and the expansion of existing facilities across the Kingdom.

 

Shibli stressed that the draft budget is based on realistic assumptions and strict spending discipline, remains subject to robust financial oversight, and reaffirms the government’s commitment to transparency, fiscal sustainability, and a gradual shift toward greater reliance on domestic revenues to finance public expenditure.