Khaberni - In its session held today, Wednesday, chaired by Prime Minister Dr. Jaafar Hassan, the Cabinet decided to approve the Fiscal Year 2026 Public Budget Bill as a preliminary step for initiating its constitutional procedures and submission to the National Assembly.
The Minister of Finance, Dr. Abdelhakim Al-Shibli, presented an overview that included the most prominent elements and assumptions upon which the bill was based. These encompassed an expectation of continued growth in real economic growth from 2.7% in 2025 to 2.9% in 2026, and then to more than 3% in 2027 and 2028, as a result of launching major capital projects such as the national water desalination carrier project, railway projects, and gas exploration and transportation projects. He also predicted that inflation rates would remain low around 2% in 2026, 2027, and 2028, the lowest in the region.
Based on the assumptions of revenues and expenditures, the total budget deficit for 2026 is expected to decrease to approximately 2125 million dinars, or 4.6% of the Gross Domestic Product (GDP), compared to the estimated deficit in 2025 which reached 2258 million dinars or 5.2% of GDP.
*Economic and Financial Budget Goals*
The 2026 public budget aims to achieve a package of goals, the most prominent of which are:
Implementing the requirements of the Economic Modernization Vision and the strategic projects included therein, considering it a state plan transcending governments.
Continuing to implement the economic and financial reform program to enhance financial and economic sustainability.
In terms of financial goals, the budget focused on:
Continuing the gradual reduction of the total deficit and public debt as a percentage of GDP.
Enhancing the increase in local revenues covering current expenditures.
Continuing to provide support for bread, gas cylinders, and financing social protection in all its branches.
Covering the costs of treating Jordanian cancer patients.
*Key Budget Indicators*
The indicators for the 2026 budget showed an increase in domestic revenue to 10196 million dinars, following an increase in economic growth, noting that the 2025 revenue estimates were revised down by 200 million dinars due to regional developments and the Iran-Israel war.
Current expenditures also increased to 11456 million dinars, covering the growth in operational expenses, salaries, wages, and costs of new vacancies in the system of ministries and governmental departments formations, alongside continuing to provide necessary allocations to support our armed forces and security agencies.
Interest payments increased slightly less than expected to about 2260 million dinars, as a result of the government adopting a strategy of replacing costly debts with more competitive interest rates.
The budget bill included support packages for various sectors with a total value of 655 million dinars, among them 124 million for cancer insurance provisions, a program covering approximately 4.1 million Jordanian citizens announced by the government this year, and 80 million for gas cylinder support after increasing it from 63 million, and 280 million for social protection, and 170 million for supporting bread and fodder. Additionally, allocations for purchasing medicines and medical supplies were raised to about 135 million dinars.
*Capital Expenditures*
Capital expenditures in the 2026 budget bill increased to 1600 million dinars, compared to the re-estimate of 1370 million dinars, to cover financing developmental projects of national importance, including:
Economic Modernization Vision projects valued at 396 million dinars
The national water carrier project valued at 60 million dinars
Gas exploration in Risha valued at 35 million dinars
Raising support for the development and improvement of municipalities to 210 million dinars instead of 180 million.
