Senators endorse 2025 draft state budget as referred from MPs

AMMAN — The Senate on Tuesday endorsed the 2025 draft state budget as referred from the Lower House.

During a session chaired by Senate President Faisal Fayez and attended by Prime Minister Jaafar Hassan and Cabinet members, the Senate approved the recommendations of its Finance and Economic Committee following a session chaired in part by Second Deputy Speaker Abdullah Ensour. 

Minister of Finance Abdelhakim Shibli presented the government's responses to senators' inquiries, followed by remarks from senators Mamdouh Nabas, Yassin Husban, Ghazi Thneibat and Rakan Fawaz, the Jordan News Agency, Petra, reported.

The senators emphasised priorities such as enhancing the investment climate, boosting exports, financing small businesses, managing public debt, and addressing poverty and unemployment.

The Senate underscored the importance of advancing Jordan's comprehensive modernisation plans across the political, economic, and administrative sectors. Discussions focused on improving public services, supporting the armed forces and security agencies, and strengthening key industries such as agriculture, health, tourism, and technology.

The Senate also underscored the importance of advancing Jordan's comprehensive modernisation plans across the political, economic, and administrative sectors. 

Discussions focused on improving public services, supporting the armed forces and security agencies and boosting vital industries such as agriculture, health, tourism, and technology.

Fayez acknowledged the challenges posed by regional instability and high public debt, urging collective efforts to overcome these hurdles. He also reaffirmed the Senate's commitment to His Majesty King Abdullah's vision for a prosperous Jordan.

The 2025 draft budget outlines a total expenditure of JD12.51 billion, comprising JD11.02 billion in current expenditure and JD 1.47 billion in capital expenditure. 

Projected total revenues stand at JD10.23 billion, including JD9.49 billion from domestic sources and JD734.38 million from foreign grants, resulting in a deficit of JD2.26 billion.

Government entities' expenditure is estimated at JD1.78 billion, with revenues of JD1.01 billion, leading to a deficit of around JD768.16 million.

Economic projections for 2025 anticipate real GDP growth of 2.5 per cent, nominal GDP growth of 4.9 per cent, stable inflation at 2.2 per cent, a 0.7 per cent rise in exports, and a 4.1 per cent increase in imports.

Economic projections for 2025 anticipate real GDP growth of 2.5 per cent, nominal GDP growth of 4.9 per cent, stable inflation at 2.2 per cent, a 0.7 per cent rise in exports, and a 4.1 per cent increase in imports.

The draft law prioritises accelerating Jordan's economic modernisation vision and advancing structural reforms. 

Key focus areas include fostering public-private partnerships, revitalising tourism and supporting the armed forces and security agencies. 

Additional objectives involve enhancing health, education, transport, and social protection services, strengthening food security and water infrastructure, and promoting digital transformation and green economy initiatives.

Finance minister, in the government's response, highlighted key economic indicators demonstrating Jordan's steady progress in 2024. 

He noted that in the first three quarters of the year, Jordan's GDP grew by 2.3 per cent at constant prices, while inflation remained at 1.6 per cent, one of the lowest rates in the region.

"National exports rose by 4 per cent, and the trade deficit narrowed by 5 per cent in the first ten months of 2024. Foreign exchange reserves reached a record high of $21 billion. Unemployment improved, declining to 21.4 per cent from 22.2 per cent during the same period in 2023."

Shibli highlighted Jordan's top ranking in budget transparency among MENA countries, as recognised by the 2024 International Budget Partnership report. 

He also underlined international institutions' positive assessment of Jordan's economic resilience.

Despite regional security and political challenges affecting domestic revenues, the government has maintained its commitment to protecting citizens from additional financial burdens, he said. 

Shibli stressed that no new taxes have been imposed on essential goods, nor have existing tax laws been amended, underscoring the government's dedication to economic stability and public welfare.