jordan pulse -

The Cabinet cleared the draft General Budget Law for fiscal year 2027 on Sunday, establishing total expenditure parameters at JD 13.7 billion and submitting the legislative framework to Parliament for constitutional review.

The early authorization seeks to unlock procurement, tender awards, and capital deployment channels prior to the start of the fiscal year, hedging against execution backlogs that constrained public works during regional disruptions in 2026.

Under the fiscal breakdown, capital outlays expand by 18 percent over re-estimated 2026 levels to reach JD 1.7 billion, outpacing current spending growth.

Capital allocations prioritize utility and resource infrastructure, specifically funding civil engineering and conveyance operations for the National Water Carrier Project, expanded field development at the Risha natural gas reserve, and targeted municipal upgrades across governorates aligned with the second executive phase of the Economic Modernization Vision.

Current expenditure is budgeted to rise by 6.4 percent to JD 12 billion, retaining a lower growth trajectory than projected domestic revenues. The operational budget incorporates a JD 260 million financial package designated for a JD 30 monthly cost-of-living allowance for active civil and military personnel, as well as pensioners earning below JD 600 monthly.

Additional operational line items expand budgetary defense allocations for the Jordan Armed Forces–Arab Army (JAF) and security directorates, while securing statutory social safety nets. State subsidies remain fully funded for price-capped bread, domestic LPG cylinders, strategic wheat and barley reserves, and state-backed oncology treatment programs.

On the revenue side, internal collections are forecast to increase by 11 percent over re-estimated 2026 figures to hit JD 10.9 billion. Treasury projections rely on non-tax revenue measures, including intensified enforcement against tax and customs evasion, mandatory onboarding for the national electronic invoicing system, and algorithmic data auditing, without introducing new taxes or raising existing rates.

The macroeconomic blueprint targets a nominal GDP expansion of 5.6 percent for 2027 while advancing structural fiscal consolidation. The overall budget deficit after grants is targeted to contract to JD 2 billion–down from JD 2.1 billion in 2026–while the primary deficit, which excludes interest payments on public debt, is projected to narrow from JD 650 million to JD 450 million.

//Petra// AA