27 MPs call on gov’t to use expected financial surplus to pay part of public debt

AMMAN – Some MPs believe the state budget may record a fiscal surplus this year and want the government to use it to address the Kingdom’s indebtedness, a move described by an economist as senseless.  

A memo initiated by Deputy Khalil Atiyeh and signed by 27 MPs called on the government to use the financial surplus that may result from the drop in global oil prices to pay part of Jordan’s public debt, estimated at over JD20 billion. 

The memo, a copy of which was made available to The Jordan Times, calls for setting up a special fund from the expected surplus to pay part of the debt. 

Despite several attempts to contact Atiyeh, he was unavailable to comment on the petition. 

Criticising the move, economist Zayyan Zawaneh said it shows that some lawmakers do not have economic and financial knowledge or expertise. 

He noted that the state budget will not record any surplus, but is forecast to suffer a deficit of around JD700 million. 

In the draft 2015 state budget law, the government allocated JD180 million in direct cash support for citizens in compensation for lifting fuel subsidies if global oil prices are above $100 a barrel, but this will not be valid as prices are set to remain under $100 oil a barrel.

The government announced there would be no cash payments this year, with some MPs considering these funds as surplus. 

“Unfortunately, deputies deal with the issue of the public debt as if they were running a grocery shop,” Zawaneh charged, explaining the issue is not that simple as there are agreements, dues and interest rates associated with the public debt. 

He said MPs should focus on critical economic issues that are of national interest such as the declining value of the euro and its repercussions on tourism, the impact of regional instability on the Kingdom’s economy, assumptions in the draft budget law and how to achieve development in the governorates. 

These are some of the issues they should work on, Zawaneh told The Jordan Times, noting the Lower House is still seeking popularity and enhancing its image among the public.