Jordan Times
Monday, January 26, 1998
Senate approves budget
By Fairouz Abu-Ghazaleh
AMMAN - The Upper House of Parliament on Sunday unanimously
approved this year's draft budget, but only after some senators
expressed their concerns over rising unemployment and poverty.
The JD1.95 billion bill, which is 5.7 per cent higher than last
year's, envisages total expenditures of JD1.87 billion and a
deficit of JD37 million.
Many of the 12 senators who took the floor during yesterday's
session urged the government to exert a greater effort to fight
escalating unemployment and poverty and increase the salaries of
civil and military employees as well as the wages of pensioners.
They also discussed privatisation and ways of luring foreign
investments into the country.
Senator Thoukan Hindawi questioned the government on the
strategies it planned to implement to reduce poverty.
"Does the House's finance committee believe that allocating
JD30 million of the budget constitute the beginning of a solid
base to address this problem, which we believe is a time
bomb?" he asked.
Dr. Hindawi was referring to official figures indicating that 22
per cent of the Kingdom's population lives in conditions of
abject poverty.
Replying on behalf of the government, Prime Minister Abdul Salam
Majali told the senators that "unemployment and poverty are
problems of high concern to the government. We have finalised the
social security package for the coming years and we are committed
to its implementation."
"But it alone cannot solve all the problems. That is why the
government is working on increasing foreign investments and our
exports in order to create new jobs," he added.
Senator Dawoud Suleiman addressed this issue, saying the
government has to revise its laws to encourage investments.
"Even though the government is revising and activating
[investment] laws... the bureaucratic system is limiting Jordan's
appeal to foreign investors," he said.
Dr. Majali admitted that the country needs to improve the
investment climate to attract more investors.
"We agree that modernising legislation and opening the door
for investments are not on their own sufficient to attract the
required cash flow," Dr. Majali said, "unless all
[these steps] are tied to improving the investment climate,
increasing profit margins and reducing administrative
restrictions and bureaucratic measures."
As to Jordan's trade relations, the prime minister noted that the
Kingdom's economic relations with Arab countries are a
"clear" priority, especially with the Palestinians, as
well as Iraq, Saudi Arabia and Syria.
"There is no need for me to reiterate the benefits of these
relationships under the current circumstances... but we have to
remember that our international relations are important as
well," Dr. Majali said. "We in Jordan do not shoulder
the responsibility of the deterioration of joint Arab
action."
Dr. Majali briefly pointed to Jordan's water problems, especially
the illegal use of water resources, water leakage and lack of
infrastructure such as dams.
The prime minister stressed the government's commitment to fight
bureaucracy and increase transparency to upgrade the performance
of the administration.
"It is time for administrative reform to be complemented by
steady strides toward decentralisation and facilitation of
decision-making procedures."
Last week, after a tough five-day debate, the Lower House
approved the draft bill by a sizeable majority - 59 out of the 74
deputies present during the session.
The budget will become law as soon as it is endorsed by His
Majesty King Hussein.