Day: November 28, 2021

Finance Minister, Mohammad Al-Ississ, said that the government seeks to boost the economy next year, pointing out that the general budget will see an increase of capital expenditures by 43.6 per cent compared to the current year’s budget.

“This year, the national economy achieved a reduction in the budget’s initial deficit by 2.1 per cent compared to 2020, and by 0.8 per cent above projections in the same budget,” Al-Ississ said in a press conference held with Minister of State for Media Affairs, the government spokesperson, Faisal Shboul, on Sunday.

Al-Ississ added that the International Monetary Fund (IMF) has commended Jordan’s performance, which has struck a balance between health and economy.

The Finance Minister denied any intention towards imposing “partial or blanket lockdowns” due to the Covid pandemic, noting that the cost of the health response to Covid incurred by the government is much less than the cost of the lockdown, and that the government is determined to follow the principle of self-reliance by covering local revenues for current expenditures.

Al-Ississ said that the principle of self-reliance is one of the most important economic indicators for any country, explaining that the self-reliance index reached about 74 per cent in 2020 and “we will increase it to 88.5 per cent in 2022.”

With regard to taxes, Al-Ississ reaffirmed that there is no increase in taxes in the 2022 budget, noting that the combating tax and customs evasion policy has enabled the government to continue to avoid introducing any taxes.

He said that the total public debt will reach JD29.448 billion by the end of this year, after excluding what is borne by the Social Security Investment Fund, at a rate of 91.6 per cent of GDP.

He explained that JD279 million were allocated to the government’s work priorities program, as well as the health sector’s allocations to combat the Covid crisis, which aim to provide the necessary health care for citizens, and allocations for youth employment worth JD80 million.

He further added that showing the financial situation transparently is one of the most important outputs of the 2021 budget, noting that this indicates the ministry’s ability to accurately estimate and enhance financial stability, and that allocations for attracting tourism investment have been increased in the 2022 budget, and allocations of the National Aid Fund have been increased as well.

Al-Ississ said that Jordan has achieved real growth of 2 per cent at the end of 2021, expecting a 2.7 per cent growth next year, and a 2.5 per cent inflation. He also expected customs and tax revenues to amount to JD355 million in 2022.

Source: Jordan News Agency

The Planning ministry and EBRD Sunday signed a €30 million concessional financing deal to build a wastewater treatment plant in Alghabawi, Zarqa.

A press statement said the full cost of the project was estimated at €60 million, €30 million of which will be financed by the European Bank for Reconstruction and Development (EBRD).

The Ministry of Planning and International Cooperation (MoPIC) is scheduled to sign a further €30 million financing deal with the EU to complete the project.

The Water and Irrigation Ministry, a signatory to the deal, will supervise the implementation of the project, the agreement states.

Nasser Shraideh, MoPIC minister, said the project seeks to introduce quick solutions to encounter the “exceptional circumstances” Jordan faces, adding the project will develop the wastewater mechanism in the target areas and improve the government’s services.

The project will benefit more than one million people in Amman and the central region, as the wastewater treatment plant’s capacity will be around 22,500 cubic meters. It will also provide job and training opportunities to over 200 people; in addition, it will reduce environmental hazards.

Shraideh praised the EU and EBRD for their support for Jordan, as well as its support on the Syrian refugee crisis that Jordan has been grappling with.

For his part, Philip ter Woort, director for EBRD eastern Mediterranean region, said, “We are very proud of the Jordanian government’s support for building a modern plant for the treatment of wastewater to provide services for families in Amman and Zarqa.

“What is most important is that this will reduce the environmental impact linked to the current reception facility in Ayn Ghazal. It will also increase Jordan’s resilience in refugees host areas that have been impacted by the water crisis.”

Source: Jordan News Agency