AMMAN: The Cabinet has endorsed the draft state budget law for 2017, with a drop in deficit to 2.8 per cent of the GDP and an increase in total spending by 7.5 per cent. The government will send the draft law to the Parliament to be debated and processed according to the Constitution, the Jordan News Agency, Petra, reported. The main features of the draft law indicate that the general revenues were estimated to stand at JD8.119 billion, divided into JD 7.342 billion as domestic revenues and JD777 million as grants.
According to the draft law, total public spending is estimated to stand at JD8.946 billion with an increase of JD621 million or 7.5 per cent, split between current spending at JD7.629 billion and capital spending amounting to JD1.317 billion. The deficit, after grants, dropped down to JD827 million or 2.8 per cent of GDP, compared with JD1.097 billion or 4 per cent of GDP in 2016. Before grants, the deficit accounts for 5.5 per cent or JD1.604 billion compared with JD1.994 billion in 2016.
The Cabinet also endorsed the budgets of the government independent agencies for 2017, with total revenues forecast at JD1.666 billion coming from three sources: JD155 million as government support, JD53 million as grants and JD1.458 billion as self-generated revenues. As for spending, the institutions are estimated to spend JD1.782 billion with an increase of 2.4 per cent. Their current expenditure, meanwhile, is expected to reach JD1.125 billion and capital expenditure JD657 million. Total deficit for all of these agencies is forecast to reach JD116 million compared with JD30 million in 2016. The government has not allocated funds to buy more vehicles or furniture and has slashed travel expenditure by 50 per cent, according to Petra.
