AMMAN, Nov 28 (Reuters) - Jordan's Finance Minister Mohamad
Al Ississ said on Sunday that the draft 2022 budget forecasts
10.6 billion dinars ($15 billion) in state expenditure and paves
the way for a rebound in growth to 2.7% after the impact of the
Al Ississ told a media briefing that Jordan had also last
week successfully concluded the third review of a four-year
programme of International Monetary Fund (IMF) backed reforms to
help it restore fiscal prudence for a sustained recovery.
Al Ississ said that the government had increased its local
revenues last year without raising taxes through a rare campaign
to combat tax evasion and by a major restructuring of the tax
and customs administration that ended exemptions.
It foresaw total revenues next year at 8.9 billion dinars,
with 848 million in foreign grants.
Jordans economy was particularly hard hit last year by the
shutdowns aimed at containing the virus, with unemployment at a
record 24% amid the worst contraction in decades.
Inflation was, however, expected to rise to 2.5 % next year
from a projected 1.6 % this year, Al Ississ said.
Most state expenditure goes on salaries and pensions in a
country which has among the highest government spending relative
to the size of its $45 billion economy.
The government has raised capital spending to 1.5 billion
dinars, a 43% rise from the previous year to help spur growth
and improve infrastructure to help attract more investment, the
finance minister said
Jordans commitment to IMF reforms and investor confidence
in the countrys improved outlook helped it to maintain stable
sovereign ratings at a time when other emerging markets were
being downgraded, Al Ississ said.
Al Ississ said debt servicing on 29.4 billion dinars of
public debt would drop next year with a push to expand
preferential loans and grants away from more expensive
(Reporting by Suleiman Al-Khalidi, Editing by Louise Heavens
and Alexander Smith)