Amman, Jan 21 (Petra) -- Finance Minister Abdelhakim Shibli underscored the government’s unwavering commitment to fiscal stability and economic resilience during a period of significant regional and international challenges.

Addressing the upper house during the budget debate, he emphasized that the government, under its strategic guidance, has upheld its financial obligations despite a shortfall in projected revenues for the 2024 budget.

Shibli stressed that Jordan’s robust economic performance is a testament to the efficacy of the government’s policies.

Highlighting key indicators, he noted that real GDP grew by 2.3% in the first three quarters of 2024, demonstrating the resilience of the Jordanian economy.

Inflation was maintained at a low rate of 1.6%, one of the region’s lowest, reflecting prudent fiscal and monetary measures.

Additionally, he pointed out that national exports rose by 4%, while the trade deficit narrowed by 5% during the first ten months of the year.

The minister highlighted a remarkable achievement in foreign currency reserves, which reached a historic $21 billion by the end of 2024.

He attributed this milestone to sound fiscal management and effective monetary policies.

Addressing the labor market, Shibli noted a positive shift, with unemployment declining to 21.4% during the first three quarters of 2024, compared to 22.2% in the same period in 2023.

He emphasized that government initiatives aimed at stimulating economic activity and creating jobs have started to yield tangible results.

Shibli also stressed the importance of fiscal reforms in bolstering domestic revenue. He revealed that tax and financial reforms adopted by the government contributed an additional 291 million Jordanian dinars (JOD) in revenue in 2024 compared to the previous year.

Despite revenue challenges, he affirmed that the government achieved the targeted budget deficit for 2024.

The minister outlined transformative development projects as a cornerstone of the government’s agenda.

He highlighted the National Water Carrier Project, railway infrastructure initiatives, and measures to stimulate private-sector investment as vital for driving sustainable growth.
"These projects," he said, "will not only enhance the competitiveness of local industries but also reduce living costs for Jordanian citizens."

Shibli stressed the government’s strategic approach to managing public debt. He explained the implementation of a debt management framework aimed at substituting high-cost borrowing with concessional financing. Immediate steps include repaying Eurobonds maturing in 2024 and addressing structural fiscal issues.

The minister projected that these measures would reduce the primary budget deficit to 2% of GDP and the overall deficit to 5.7% by 2025, with public debt declining to 90% of GDP and further to 80% by 2028.

Transparency and fiscal governance also featured prominently in Shibli’s remarks. He noted that the 2025 fiscal plan prioritizes growth-oriented spending, with capital expenditures set to rise by 16.5% over 2024 levels.

He assured that this spending would be allocated to high-impact projects selected based on rigorous criteria to maximize their contribution to economic growth.

Jordan’s top ranking in the Middle East and North Africa for budget transparency, as recognized by the International Budget Partnership in 2024, underscores the success of these efforts, he added.

The minister firmly emphasized the government’s commitment to protecting citizens from additional fiscal burdens.

"Despite the revenue challenges posed by geopolitical events, the government has not imposed any new taxes on essential goods or amended tax laws to increase the tax burden," Shibli stated.

Concluding his remarks, the minister reaffirmed the government’s dedication to implementing the recommendations of the Financial and Economic Committee and responding to the observations of Jordan’s esteemed senators.

He emphasized that the government would prepare a comprehensive report detailing actions taken to address these recommendations.

//Petra// AA


21/01/2025 13:17:35