Jordan Times
Saturday, December 5, 1998
Water sector to receive lion's share of capital spending in next year's budget
AMMAN (J.T.) — The recurrent spending is estimated at JD1,683
million in the 1999 budget or 78 per cent of the budget which totals JD2,160 million for
next year. Capital spending is expected to account for the remaining 22 per cent, or JD477
million.
The government targets a budget deficit of seven per cent of the total gross domestic
product, estimated at JD5,540 million, or about JD378.8 million. The Council of Ministers
is expected to endorse the 1999 draft budget Saturday and to transfer it to the Lower
House on the same day in order to specify the time for debating it. The Cabinet on Tuesday
approved an addendum to the 1998 budget totalling JD133 million.
Local revenues for next year were estimated at around JD1,782.3, representing more than 80
per cent of the total budget noting that “a good saving was achieved between
recurrent revenues and recurrent savings.” Wages of civil servants were estimated at
JD352 million or 16.3 per cent of the total budget.
A JD35 million amount was budgeted for the projects of the Social Productivity Programme
but the funds earmarked for food subsidies were lowered by the same figure expected from
the cuts in bread prices early next year. An informed source said that in return for
cutting bread prices, the subsidy will be lifted except to those who are beneficiaries
from the National Aid Fund and military personnel.
Subsidies will continue for other foodstuffs but specifically to benefit those who earn
less than JD500 a month. The source said that no decision was taken regarding the
allocations for wheat subsidy although it was extended. “The government preferred to
leave the issue for discussion with the legislative authority within the framework of
dialogue that will start with the deputies to arrive at a suitable equation that would
satisfy the Lower House,” the source added.
The 1999 budget focused on two main aspects the first being the social dimension and the
second in covering all types of expenditures so as there would no way to issue any
addendums for the budget.
The water sector took the lion's share of capital spending in next year's budget and an
independent budget was formulated for each governorate. As such, the general budget took
into consideration the principle of decentralisation but all venues of spending in the
governorates were tied to the central authority in Amman through the ministries and
departments to the directorates in each governorate.
The source indicated that the targeted seven per cent deficit was in harmony with the
expected growth rate and money supply. The deficit, which was calculated based on detailed
financial and monetary studies, has left a share of the credits to the private sector.
Allocations were also budgeted to repay instalments of loans and interest.