House panel changes to draft budget cut deficit by over JD200m

AMMAN — The Lower House Financial Committee on Tuesday presented its notes on the draft 2015 state budget law to deputies, providing a set of recommendations to stimulate the economy and cut the budget deficit. 

The committee’s rapporteur, MP Fatima Abu Abtah (Irbid), read the report, which said the panel has narrowed the 2015 state budget deficit to JD468 million, from the JD688 million in the government version. 

The MP added that the panel has cut down current expenditure from JD6.922 billion as estimated in the government’s version of the law to around JD6.700 billion.

Abu Abtah concluded the report with a call on the House to endorse a total of 36 recommendations to reduce the deficit, stimulate the economy, curb expenditures and address the country’s energy woes.

The panel suggested the establishment of a JD100-million emergency fund at the Central Bank of Jordan to cover the needs of the army and other security bodies during exceptional circumstances.

The panel also recommended that the estimated financial losses of the National Electric Power Company be decreased by JD276.5 million to become JD503.5 million instead of JD780 million as estimated by the government. 

The committee also called on the government to embark on negotiations with lending countries to cancel part of Jordan’s debts in return for the Kingdom’s humanitarian assistance to Syrian refugees and its war on terror.

Curbing public expenditures and belt tightening were also among the recommendations, starting with withdrawing public cars from senior officials and replacing them with transportation allowances.  

The panel also called on the government to encourage the private sector to use solar power by facilitating the necessary lending to implement renewable energy projects. 

The House will begin its discussion of the draft 2015 budget law next Sunday with each parliamentary bloc, coalition and independent MP given 20, 25 and 10 minutes respectively to air their views on the law. 

When he presented the draft budget law to the House in November, Finance Minister Umayya Toukan put the size of 2015 budget at JD8.09 billion.

But by excluding foreign grants, Toukan said the budget shortfall would be around JD1.8 billion in 2015, representing 6.5 per cent of the gross domestic product, down from the JD2.8 billion budget deficit registered in 2014.

According to the state budget statement submitted to the House, the volume of public revenues in 2015 is expected to reach JD6.280 billion, an increase of 9 per cent from 2014. 

Toukan attributed the reason primarily to the rise in tax and non-tax revenues by 4.9 per cent and 8 per cent, respectively.

He estimated foreign grants in 2015 to reach JD1.128 billion, split into JD806 million from the Gulf Cooperation Council and JD322 million from the US and EU.