jordan pulse -

Amman- The Cabinet, in a session chaired by Prime Minister Dr. Jafar Hassan on Wednesday, approved the draft general budget law for the fiscal year 2026.

The approval initiates the bill's constitutional procedures before its referral to the Parliament.

Finance Minister Abdulhakim Al-Shibli presented the draft's key elements and assumptions. These included a projected rise in real economic growth from 2.7% in 2025 to 2.9% in 2026, and over 3% in 2027 and 2028.

This growth is attributed to major capital projects like the National Water Carrier, the railway project, and gas exploration and transportation.

Inflation rates are expected to remain low at around 2% from 2026 to 2028.

The total budget deficit for 2026 is projected to decrease to about 2.125 billion dinars, or 4.6% of GDP. This compares to an estimated deficit of 2.258 billion dinars, or 5.2% of GDP, in 2025.

The 2026 budget aims to implement the Economic Modernisation Vision and its strategic projects. It also focuses on continuing the economic and financial reform programme.

Key financial goals include a gradual reduction of the total deficit and public debt-to-GDP ratio. It also seeks to increase the coverage of current expenditures by local revenues.

The budget continues to provide support for bread, gas cylinders, and social protection. It also covers the cost of cancer treatment for Jordanian patients.

Domestic revenues are projected to rise to 10.196 billion dinars. Current expenditures rise to 11.456 billion dinars to cover operational costs, salaries, and new vacancies.

Interest payments are expected to reach approximately 2.260 billion dinars.

The draft allocates 655 million dinars in support for various sectors. This includes 124 million for the cancer insurance programme, 80 million for gas cylinder support, 280 million for social protection, and 170 million for bread and fodder support.

Capital expenditures in the 2026 budget project increase to 1.600 billion dinars. This funds national development projects, including 396 million for Economic Modernisation Vision projects, 60 million for the National Water Carrier, and 35 million for Risha gas exploration.

Al-Mamlaka