Jordan struggles with budget deficit as UNRWA funding suspended

Awni Daoud, an economist, told The Jordan Times that the Kingdom, home to a large number of refugees, is among the regions most affected by this suspension, adding that "the country is already grappling with a budget deficit and that defunding of the UN relief agency adds more costs that Jordan will struggle to bear".

Mohammad Tal, former editor-in-chief of Al Dustour newspaper, told The Jordan Times that Jordan, which hosts the largest number of Palestinian refugees benefitting from UNRWA, is the country most affected by the funding suspension. He also noted that UNRWA has, in recent years, covered all refugee expenses, including schooling and medical care.

“The funding shortage has plunged Jordan into a crisis, adding a significant burden to its budget and the Jordanian government recognises the necessity to fill this gap,” Tal added.

Citing a report by UNRWA, Daoud said that there are approximately 5.9 million refugees across five regions, with about 2.3 million residing in Jordan. “UNRWA requires $145 million to address the shortfall in its Jordan budget. This budget supports schools, health centres, and teachers working in UNRWA schools.”

“UNRWA warned of major problems starting in April if donor countries continue to withhold funding.”

Despite initial doubts about its ability to continue operations after countries suspended contributions totalling approximately $450 million, UNRWA confirmed that its operations in Jordan would continue through March.

UNRWA’s annual operational budget in Jordan is approximately $145 million. It employs around 7,000 staff members, operates 161 schools serving over 107,000 students of both genders and runs 25 health centres providing more than 1.6 million medical consultations annually.

Luis Miguel Bueno, a spokesperson for the European Union, recently told Al Mamlaka that Jordan is among the countries most affected by the temporary suspension of UNRWA funding as it provides essential services to over two million refugees in the Kingdom.

The suspension came after 16 donor countries temporarily halted or suspended their donations to UNRWA, totalling $450 million, following unproven allegations of agency employees’ involvement in an operation on October 7 last year.