Amman: The Parliamentary Finance Committee reported that the allocation of interest on public debt in the general budget for the fiscal year 2024 amounted to JD 1.980 billion, marking a JD 277 million increase, or 16.2 percent, compared to the re-estimate of 2023. Additionally, support for wheat supplies is JD 143 million, barley is JD 66 million, and bran is JD 17 million.
MP Ali Tarawneh, the committee’s rapporteur, explained that the budget deficit after grants reached approximately JD 2.068 billion, while the deficit before grants amounted to about JD 2.792 billion, representing 7.4 percent of the Gross Domestic Product (GDP).
This was disclosed during a Lower House session on Wednesday, chaired by Ahmed Safadi, and in the presence of Prime Minister Bisher Khasawneh, and members of the government. Tarawneh presented the House’s finance report on the general budget for the fiscal year 2024 and its recommendations after discussions concluded.
He noted that 238,000 families benefit from recurring and temp
orary monthly aid programs at a financial cost of JD 255.2 million in 2024. The number of individuals benefiting from emergency aid programs, physical rehabilitation aid, training, employment, and medical treatment reached 15,950 individuals, at a cost of JD 4.9 million.
Members of the Lower House will commence discussions on the draft law starting next Sunday, followed by a vote. The Finance Committee recommends neutralizing the increase in shipping prices of imported goods in the equation of customs duties and the general sales tax. It also calls for approving shipping costs before last October 7, intensifying supervision of the markets to ensure the stability of commodity prices, and providing goods in the civil and military institutions with a margin to cover the cost when necessary.
The committee calls for studying the impact of the indirect tax on consumption growth and real GDP in the future, taking steps to address the tax structure, and resuming financing support programs by the Central Bank of Jor
dan for imports of food commodities. This is to reduce the costs of lending and their impact on lowering commodity prices as the consequences of the Israeli aggression continue.
The committee stresses the need to inform the international community of the results of the Finance Committee’s study on the costs of hosting Syrian refugees, especially its impact on poverty and unemployment.
Regarding the Economic Modernization Vision program and the public sector modernization map, the committee emphasizes the importance of implementing the projects included in the 2024 budget and within the plan’s executive program. They call for implementing the path of the vision’s executive program and the path of the timetable economic modernization map implementation program. Commitment to the path of implementation of the national water desalination carrier project, the railway project, the national steel project, and sending a periodic report every 3 months to the Lower House of Parliament’s Finance Committee, on the exec
utive course of the program.
Concerning the general budget, the committee stresses the need to conduct studies for all government-owned companies and measure their performance and returns. Particularly, the Jordan Free and Development Zones Group, which does not achieve its returns to the public treasure despite its infrastructure being prepared for diversified industrial and tourism investment and the growth of its capital spending.
The committee expresses appreciation for government measures to relieve economic pressures due to the rise in global commodity prices. It contributed to curbing the rate of inflation and keeping the citizen’s standard of living from further pressures, adding that cumulative inflation requires increasing salaries of employees and civilian and military retirees. It noted that the last increase was 11 years ago to face successful price rises.
They stress the need to adopt the draft budgets of the Audit Bureau, the Independent Election Commission, and the Constitutional Court with
out making any amendments. Preserving their constitutional and legal independence, and referring them to the Lower House for approval, amendment, or rejection. Also, reconsidering the student support fund system, where support is directed through the system to poor students.
Regarding industry and trade, the Finance Committee praised the launch of programs to support small and medium-sized companies, calling for giving them more care to contribute to increasing their contribution to economic growth. It indicated that a new survey of sheep breeders had been conducted to ensure the delivery of real support to the breeder.
The committee calls for the allocation of JD 60 million to the Agricultural Credit Corporation to grant interest-free loans to farmers, stimulate the introduction of modern technologies and crops that contribute to reducing or eliminating imports. Also, expanding agricultural research to develop agricultural products and diversify them to expand export crops, and encourage special initiative
s concerned with the sector.
They stress expanding agricultural plots within government-owned lands and water harvesting projects within the geography. Raising the areas allocated for expansion, preparing an executive program to gradually reduce the percentage of water loss annually to reach international standard loss rates.
The committee calls for developing educational outcomes in universities, creating a legislative environment that enables universities to invest in infrastructure with the private sector. To be a support for developing the performance of their educational mission, and supporting leadership and creativity programs in universities. Preparing students to create startup companies within Jedco’s programs.
The committee appreciates the launch of vocational education paths for the academic year 2023-2024, expressing its aspiration to expand schools to teach its path.
They stress the need to reconsider all contracts for generating electrical power to achieve balance in the budget of the Natio
nal Electric Power Company. Expanding the exploration of mineral resources, accelerating the pace of memorandums of understanding into agreements. Supporting the Jordanian Petroleum Company’s exploration projects and providing the necessary equipment to complete exploration and exploration operations.
The committee mentions that the plan to reduce electrical losses has been ongoing for years without taking practical steps or results. Especially in electricity distribution companies, as the percentage of losses reached about 14 percent. Stressing the necessity of actually starting to reduce the losses gradually and within a medium-term implementation program.
They also call for expanding the geographical visibility of areas of historical importance. Maintaining them and providing the necessary infrastructure, moving towards establishing and providing health services in various tourist-attractive locations. Offering them to the private sector or beneficiaries of the National Aid Fund, to prepare the service f
or a symbolic fee.
The committee stresses the necessity of working to find a geographical map of the areas prepared for the establishment of specialized tourist hospitalization projects and resorts that rely on natural healing resources and innovative methods, offering them investment opportunities. In addition to diversifying attractive tourism programs to increase diversity and providing investment opportunities that enable the establishment of specialized tourism companies in them.
They point out that the Israeli aggression against Gaza and the occupied West Bank affected the Jordanian tourism sector and its related sectors by reducing the sector’s performance results for the last quarter of last year by 90 percent.
The committee explains that the study expected the tourism sector’s performance results for the last quarter would decline by 90 percent. From the level of growth achieved in each of the first three quarters of last year, which recorded a growth of 37.7 percent last year.
It states that tou
rism income was affected by JD 850 million, which would have contributed to an increase in the Gross Domestic Product to approximately 4 percent by the end of last year. Adding that tax revenues decreased by JD 100 million at its minimum.
Regarding the governorate and municipal councils, the committee stresses the necessity of facilitating all the work of the governorate councils to implement project priorities in the governorates, supporting the governorate councils to enable them to carry out their responsibilities, and adopting the governorate council plans that include project priorities for every 3 years in the future.
They call for the preparation of infrastructure projects in all municipalities of the Kingdom, contributing to providing basic services to citizens and development projects with an investment return on them in partnership with the private sector. In addition to the necessity of working to meet citizens’ requests for the delivery of basic services, the most important of which are water an
d electricity, which do not constitute an attack on State property.
Source: Jordan News Agency