Amman, Jan 21 (Petra) -- The Senate began its deliberations of the 2025 state budget Tuesday, with senators calling for fundamental changes in public finance management and economic policy amid concerns over revenue shortfalls and rising public debt.

The Senate's Economic and Financial Committee presented a sweeping critique of current fiscal practices, advocating for a shift from broad commodity subsidies to targeted support for approximately 660,000 civil and military personnel and retirees, alongside 200,000 National Aid Fund beneficiaries.

The committee's rapporteur, Amer Al-Hadidi, revealed that last year's revenue fell short by 900 million dinars from projections, with authorities forced to cut capital expenditure by 300 million dinars to partially bridge the gap. Grant coverage notably declined from 8.6 percent to 5.9 percent, exacerbating fiscal pressures.

The committee called for universities to achieve financial self-sufficiency within three years, proposing a 100-million-dinar capital project fund offering concessional loans aligned with the Higher Education Council's specialization plans.

In healthcare, recommendations focused on restricting government hospital services to health insurance beneficiaries while implementing specialist physician incentives matching Royal Medical Services standards.

Addressing economic development, senators emphasized the need for careful evaluation of public-private partnership commitments to prevent overburdening the treasury.

The committee stressed maintaining genuine private sector engagement in decision-making through institutionalized consultation mechanisms.

The recommendations encompassed comprehensive reforms across sectors, including calls for expanding credit information systems to curb excessive personal lending, strengthening Central Bank independence, and accelerating governmental service automation.

Senators particularly emphasized studying the implications of potential reductions in Syrian refugee support funding and UNRWA resources.

In the energy sector, senators urged expedited studies for connecting the Risha gas field to the Arab Gas Pipeline and accelerating electricity supply arrangements with Syria and Lebanon.

The committee called for fundamental solutions to National Electric Power Company's challenges, demanding clarity on renewable energy policies amid concerns that recent Electricity Law amendments may have undermined solar energy initiatives.

The recommendations emphasized examining electricity storage from renewable sources and establishing a Nuclear Research Authority with competitive salary scales matching Jordanian universities.

Industrial sector competitiveness emerged as a key focus, with calls for reduced electricity tariffs to enhance manufacturing capabilities.


Cultural development received significant attention, with senators advocating for a comprehensive cultural awareness plan and support for Jordanian drama production.

The committee recommended developing a comprehensive national narrative highlighting achievements of creative citizens, martyrs, and statesmen, while promoting coordination with the Tourism Ministry to showcase Jordan's heritage globally.

The committee addressed social development challenges, recommending the transfer of begging-related issues to the Public Security Directorate, noting its evolution into potential human trafficking.

Senators called for streamlining National Aid Fund procedures to encourage beneficiaries to seek employment rather than rely on aid, alongside developing a unified platform to prevent duplicate service provision.

The recommendations extended to civil society governance, proposing mechanisms for classifying and evaluating associations within the forthcoming Associations Law, while simplifying procedures for closed associations.

The committee emphasized enhanced oversight of elderly care and special needs facilities, including electronic monitoring and periodic inspections.

In financial governance, senators stressed the importance of maintaining Jordan Securities Commission coordination with the Companies Control Department and Central Bank, particularly in corporate governance and monitoring.

They advocated listing government-owned companies on the financial market and adopting international disclosure standards.

The comprehensive recommendations reflect the Senate's vision for structural reforms across Jordan's economic, social, and cultural sectors, emphasizing sustainable development and efficient resource allocation.

//Petra// AA

21/01/2025 12:36:46