Government to Increase Capital Expenditure in 2022

Finance Minister

On Sunday, the Finance Minister, Mohammad Al-Ississ, said the government seeks to boost the economy in 2022 increase of capital expenditure by 43.6 percent compared to 2021’s budget.

According to Ississ, the national economy achieved a 2.1 percent reduction in the 2021 budget’s initial deficit in comparison with 2020, and 0.8 percent above projections in the same budget.

He added that the International Monetary Fund (IMF) has commended Jordan’s performance, praising the balance achieved between health and economy.

Lockdown Rumors and Self-Reliance

Ississ said rumors about upcoming lockdowns are false. He reassured attendees that the government does not have any intentions to impose partial or total lockdowns” due to the developing COVID-19 situation in the Kingdom.

He noted that the cost of responding to the pandemic through other means is much more affordable than that of imposing lockdowns. He added that the government is determined to follow the principles of self-reliance by covering local revenues for current expenditures.

Ississ said the principle of self-reliance is a key economic indicator for any country, pointing out that the self-reliance index reached approximately 74 percent in 2020. He added that the government’s goal is to reach 88.5 percent next year.

Taxes and Public Debt

Ississ also discussed taxes and said there will be no increase in taxes in next year’s budget. He noted that the policy regarding combating tax and customs evasion enabled the government to avoid introducing any additional taxes.

The total public debt, according to Ississ, will reach JOD29.448 billion by the end of 2021, excluding what is borne by the Social Security Investment Fund at a rate of 91.6 percent of GDP.

He explained that JOD279 million were allocated to the government’s work priorities program, as well as the health sector to combat the pandemic. An additional JOD80 million were allocated for youth employment programs.

Ississ said the Kingdom achieved real growth of two percent by the end of this year, adding that he expects a 2.7 percent growth and a 2.5 percent inflation in 2022. He also said he sees customs and tax revenues reaching JOD355 million next year.

Source: Petra News

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