Public finance indicators during the first half of 2025
The government’s financial performance in the first half of 2025 shows a mix of higher revenues and faster growth in spending. This led to a larger fiscal deficit and higher public debt. These figures help to better understand the state of public finances and the challenges for their sustainability over the medium term.
On the revenue side, domestic revenues reached about JD4,668.7 million, compared to JD4,504 million in the same period of 2024, an increase of JD164.8 million. This growth came from both tax and non-tax revenues. Tax revenues rose by around JD74.2 million, mainly due to a 6.3% increase in the general sales tax. However, income and profit taxes fell by 4.9%, reflecting slower real economic activity related to earnings and profits compared to taxes on consumption. Non-tax revenues increased by about JD 90.5 million, driven by higher miscellaneous revenues and sales of goods and services, despite a significant drop in property income. External grants, on the other hand, fell sharply to JD22.1 million, down from JD77.9 million last year, a drop of 71.6%, reducing their contribution to the treasury.
On the expenditure side, total spending during the first half of the year reached JD 5,769.3 million, compared to JD 5,353.4 million in the same period of 2024, an increase of JD 415.9 million, or 7.8%. Most of this increase came from higher current spending, which rose by JD 334.8 million, mainly due to wages, subsidies, and debt service. Capital spending also rose by 18.6% to JD 81.1 million, which is positive for investment, but still limited compared to the size of the economy and its development needs.
As a result, the budget recorded a fiscal deficit after grants of JD 1,078.4 million, compared to JD 771.5 million in the same period of 2024. The deficit before grants rose to JD 1,100.5 million, showing that external grants alone are not enough to reduce the fiscal gap. These numbers indicate that revenue growth was not enough to keep up with rising spending, causing the deficit to increase by about 40% in one year.
Regarding public debt, total gross public debt, including amounts held by the Social Security Investment Fund (SSIF), reached around JD 46 billion at the end of June 2025, or 118% of estimated GDP. This high level highlights the challenge of maintaining a sustainable debt path.
According to the Ministry of Finance, excluding the SSIF reduces government debt to about JD 35.36 billion, or 90.9% of GDP, compared to JD 34.18 billion or 90.2% at the end of 2024. The debt structure shows that external debt reached JD 19.82 billion, or 50.9% of GDP, slightly higher than at the end of 2024. Debt service in June 2025 included about JD 22.2 million in interest and JD 935.1 million in principal repayments, which puts pressure on the balance of payments and limits funds for development projects. Domestic debt reached JD 15.53 billion, or 39.9% of GDP, compared to 39.2% at the end of 2024, reflecting increased reliance on local borrowing to cover the fiscal deficit.
Overall, the government’s financial performance in the first half of 2025 highlights a dual challenge: revenue growth is not keeping up with rising current expenditures, and both public debt and the fiscal deficit continue to increase, despite some improvement in capital spending. Addressing these imbalances requires a comprehensive restructuring of public spending to make it more efficient, expanding the tax base without hurting the economy, and adopting a clear strategy to reduce the debt-to-GDP ratio over the medium term. Without these measures, financial pressures will continue, potentially limiting sustainable economic growth and the achievement of modernization goals.
Raad Mahmoud Al-Tal is head of the Economics Department – University of Jordan
The government’s financial performance in the first half of 2025 shows a mix of higher revenues and faster growth in spending. This led to a larger fiscal deficit and higher public debt. These figures help to better understand the state of public finances and the challenges for their sustainability over the medium term.
On the revenue side, domestic revenues reached about JD4,668.7 million, compared to JD4,504 million in the same period of 2024, an increase of JD164.8 million. This growth came from both tax and non-tax revenues. Tax revenues rose by around JD74.2 million, mainly due to a 6.3% increase in the general sales tax. However, income and profit taxes fell by 4.9%, reflecting slower real economic activity related to earnings and profits compared to taxes on consumption. Non-tax revenues increased by about JD 90.5 million, driven by higher miscellaneous revenues and sales of goods and services, despite a significant drop in property income. External grants, on the other hand, fell sharply to JD22.1 million, down from JD77.9 million last year, a drop of 71.6%, reducing their contribution to the treasury.
On the expenditure side, total spending during the first half of the year reached JD 5,769.3 million, compared to JD 5,353.4 million in the same period of 2024, an increase of JD 415.9 million, or 7.8%. Most of this increase came from higher current spending, which rose by JD 334.8 million, mainly due to wages, subsidies, and debt service. Capital spending also rose by 18.6% to JD 81.1 million, which is positive for investment, but still limited compared to the size of the economy and its development needs.
As a result, the budget recorded a fiscal deficit after grants of JD 1,078.4 million, compared to JD 771.5 million in the same period of 2024. The deficit before grants rose to JD 1,100.5 million, showing that external grants alone are not enough to reduce the fiscal gap. These numbers indicate that revenue growth was not enough to keep up with rising spending, causing the deficit to increase by about 40% in one year.
Regarding public debt, total gross public debt, including amounts held by the Social Security Investment Fund (SSIF), reached around JD 46 billion at the end of June 2025, or 118% of estimated GDP. This high level highlights the challenge of maintaining a sustainable debt path.
According to the Ministry of Finance, excluding the SSIF reduces government debt to about JD 35.36 billion, or 90.9% of GDP, compared to JD 34.18 billion or 90.2% at the end of 2024. The debt structure shows that external debt reached JD 19.82 billion, or 50.9% of GDP, slightly higher than at the end of 2024. Debt service in June 2025 included about JD 22.2 million in interest and JD 935.1 million in principal repayments, which puts pressure on the balance of payments and limits funds for development projects. Domestic debt reached JD 15.53 billion, or 39.9% of GDP, compared to 39.2% at the end of 2024, reflecting increased reliance on local borrowing to cover the fiscal deficit.
Overall, the government’s financial performance in the first half of 2025 highlights a dual challenge: revenue growth is not keeping up with rising current expenditures, and both public debt and the fiscal deficit continue to increase, despite some improvement in capital spending. Addressing these imbalances requires a comprehensive restructuring of public spending to make it more efficient, expanding the tax base without hurting the economy, and adopting a clear strategy to reduce the debt-to-GDP ratio over the medium term. Without these measures, financial pressures will continue, potentially limiting sustainable economic growth and the achievement of modernization goals.
Raad Mahmoud Al-Tal is head of the Economics Department – University of Jordan
The government’s financial performance in the first half of 2025 shows a mix of higher revenues and faster growth in spending. This led to a larger fiscal deficit and higher public debt. These figures help to better understand the state of public finances and the challenges for their sustainability over the medium term.
On the revenue side, domestic revenues reached about JD4,668.7 million, compared to JD4,504 million in the same period of 2024, an increase of JD164.8 million. This growth came from both tax and non-tax revenues. Tax revenues rose by around JD74.2 million, mainly due to a 6.3% increase in the general sales tax. However, income and profit taxes fell by 4.9%, reflecting slower real economic activity related to earnings and profits compared to taxes on consumption. Non-tax revenues increased by about JD 90.5 million, driven by higher miscellaneous revenues and sales of goods and services, despite a significant drop in property income. External grants, on the other hand, fell sharply to JD22.1 million, down from JD77.9 million last year, a drop of 71.6%, reducing their contribution to the treasury.
On the expenditure side, total spending during the first half of the year reached JD 5,769.3 million, compared to JD 5,353.4 million in the same period of 2024, an increase of JD 415.9 million, or 7.8%. Most of this increase came from higher current spending, which rose by JD 334.8 million, mainly due to wages, subsidies, and debt service. Capital spending also rose by 18.6% to JD 81.1 million, which is positive for investment, but still limited compared to the size of the economy and its development needs.
As a result, the budget recorded a fiscal deficit after grants of JD 1,078.4 million, compared to JD 771.5 million in the same period of 2024. The deficit before grants rose to JD 1,100.5 million, showing that external grants alone are not enough to reduce the fiscal gap. These numbers indicate that revenue growth was not enough to keep up with rising spending, causing the deficit to increase by about 40% in one year.
Regarding public debt, total gross public debt, including amounts held by the Social Security Investment Fund (SSIF), reached around JD 46 billion at the end of June 2025, or 118% of estimated GDP. This high level highlights the challenge of maintaining a sustainable debt path.
According to the Ministry of Finance, excluding the SSIF reduces government debt to about JD 35.36 billion, or 90.9% of GDP, compared to JD 34.18 billion or 90.2% at the end of 2024. The debt structure shows that external debt reached JD 19.82 billion, or 50.9% of GDP, slightly higher than at the end of 2024. Debt service in June 2025 included about JD 22.2 million in interest and JD 935.1 million in principal repayments, which puts pressure on the balance of payments and limits funds for development projects. Domestic debt reached JD 15.53 billion, or 39.9% of GDP, compared to 39.2% at the end of 2024, reflecting increased reliance on local borrowing to cover the fiscal deficit.
Overall, the government’s financial performance in the first half of 2025 highlights a dual challenge: revenue growth is not keeping up with rising current expenditures, and both public debt and the fiscal deficit continue to increase, despite some improvement in capital spending. Addressing these imbalances requires a comprehensive restructuring of public spending to make it more efficient, expanding the tax base without hurting the economy, and adopting a clear strategy to reduce the debt-to-GDP ratio over the medium term. Without these measures, financial pressures will continue, potentially limiting sustainable economic growth and the achievement of modernization goals.
Raad Mahmoud Al-Tal is head of the Economics Department – University of Jordan
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Public finance indicators during the first half of 2025
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