Lower House passes 2025 state budget bill

-90 of 129 deputies present vote in favour of law

-Finance minister says economic indicators show growth despite wars, regional turbulence 

AMMAN — The Lower House on Wednesday endorsed the draft state budget law for the fiscal year 2025. 

During a session chaired by Lower House Speaker Ahmad Safadi and attended by Prime Minister Jafar Hassan and Cabinet members, 90 out of out of the 129 lawmakers present voted in favour of the bill, the Jordan News Agency, Petra, reported.

Replying to MPs' remarks on the draft law, Finance Minister Abdulhakim Shibli said that economic indicators show a growth and improvement in the national economy despite wars and difficult conditions in the Arab world.

Shibli said that the government had not raised taxes on any basic commodities or the income tax, noting that the tax burden in the Kingdom is within the rate of countries with similar economic conditions.

Upon referring the bill to the Lower House in late December, Shibli said that the economy is projected to grow at a real GDP rate of 2.5 per cent in 2025, increasing to 3 per cent in 2026 and 2027. Nominal GDP is expected to grow by 4.9 per cent in 2025 and 5.6 per cent in 2026 and 2027.

At the time, Shibli attributed the anticipated growth to improved performance in vital sectors such as construction, tourism and industry, as well as increased export growth. 

Additional drivers include the positive effects of lower interest rates, which will expand local credit and stimulate investment, and the implementation of major projects such as the National Carrier Project, railway infrastructure and the construction of new hospitals and schools, the minister said.

Inflation rates are expected to remain moderate, with a projected 2.2 per cent in 2025, 2.5 per cent in 2026, and a decline to 2.3 per cent in 2027. 

The current account deficit in the balance of payments, as a percentage of GDP, is projected to reach approximately 4.6 per cent in 2025, decreasing to 4.1 per cent in 2026 and 3.8 per cent in 2027.

The draft budget law estimates total public expenditures at JD12.511 billion, including JD11.042 billion in current expenditures and JD1.469 billion in capital expenditures, representing a 16.5 per cent increase from 2024. 

It also estimates total public revenues at JD10.233 billion, including JD9.498 billion in domestic revenues and JD734 million in foreign grants.