Lower House passes 2022 draft state budget law

AMMAN — The Lower House on Monday passed the 2022 draft state budget law with a majority of 86 votes out of 105 attending MPs, while the draft for the year’s budgets of independent public institutions passed with 79 votes out of 101. 

The lawmakers endorsed cutting the current expenditures by JD74 million, including JD15 million listed in the state budget and JD59 million of the independent public institutions’ expenditures, the Jordan News Agency, Petra, reported.

Finance Minister Mohamad Al-Ississ read the government’s response to MPs’ queries during a session chaired by Lower House Speaker Abdulkarim Dughmi and attended by Cabinet members. 

The bill submitted to the House estimated the volume of the state budget’s spending in 2022 to reach JD10.6 billion and independent public institutions’ expenditures to JD1.5 billion.

The state budget’s revenues in 2022 were estimated at JD8.9 billion, out of which 68 per cent to be generated from tax returns, 10 per cent from foreign grants and 22 per cent from non-tax resources. 

The revenues of the independent public institutions in 2022 are expected to drop by JD100 million, to reach JD 860 million.

The MPs’ recommendations focused on increasing the salaries of employees and retirees whose monthly salaries are less than JD300.

The recommendations also include adopting policies to develop the performance of the transport, agriculture, tourism and energy sectors, reduce water losses, and remove investment obstacles. 

Other recommendations included establishing major projects in partnership with the private sector, collecting overdue debts to the Treasury, completing comprehensive and fair health insurance, and reviewing agreements on generating electricity.

The 2022 budget’s expenditures are expected to reach JD12.181 billion, including an estimated capital spending of JD2 billion. 

The government argues that increasing the capital spending by 41 per cent of the two budgets could push towards economic recovery and achieve a growth rate of 2.7 per cent, as JD274 million were allocated for the government’s economic priorities programme, JD60 million for partnerships with the private sector and JD110 million for governorates councils and ongoing capital projects.

The government’s economic priorities programme for this year includes the implementation of several projects: The first phase of the railway project, the completion of the regional electrical connection (Egypt, Palestine, Iraq, Lebanon), the upgrading of Hamza oil field and Al Risha gas field, as well as the implementation of the smart transport system.

According to the government estimations, the National Water Carrier project needs five years to be completed after launching the tender this year.

Before grants, the 2022 budget’s deficit is estimated at JD3.3 billion, which in case covered by loans could increase the public debt to JD38.8 billion, constituting 114.7 per cent of GDP, according to the Jordan News Agency, Petra. 

The draft law estimated foreign grants in 2022 to reach JD848 billion, with JD599 million from the US, JD108 million from pledges made at the Mecca summit, JD60 million from the EU, JD55 million from the Gulf Development Fund and JD26 million from other sources. 

To enhance self-reliance, an 88-per cent coverage of current expenditures by local revenues is projected in 2022’s budget, compared to a coverage rate of 74 per cent in 2021.