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Ammon News - The Lower House Monday passed the 2022 general budget with a spending volume of JD12.181 billion, which includes about JD2 billion as Capital expenditures (CapEx), amid government optimism that this spending will contribute to revitalizing the business environment and driving the national economy, which has been significantly impacted by the Covid-19 pandemic, which is suffering from an unprecedented rise in unemployment rates, and a record exacerbation of deficit and indebtedness, amid the worst deflation in decades.

The government wagers on increasing capital spending by 41 per cent in the both state's budgets to achieve economic recovery and realize a growth rate of 2.7 per cent. JD274 million was allocated for the "Government Action Priorities Program" projects, and JD60 million for the partnership with the private sector, in addition to JD110 million for "governorate councils allocations", and capital projects that are ongoing or under implementation.

The government’s action priorities program for this year includes the implementation of following projects: the first phase of the railway project, and the completion of the regional electricity linkage (Egypt, Palestine, Iraq, Lebanon), development of the Hamza oil field production, and development of the Risha gas field, in addition to implementing the smart transportation system, while the completion of the national carrier project needs 5 years after the floating of tender this year, according to government projections.

Estimates indicate that the "cumulative deficit" in the two budget laws will reach JD2.4 billion this year, and about JD3.3 billion, excluding external grants, to be covered by borrowing, which will raise the public debt to JD38.8 billion, or 114.7 per cent of GDP.

The budget assumes receiving external grants worth JD848 million, including JD599 million from the United States, JD108 million from the outputs of the Makkah Conference, JD60 million from the European Union, JD55 million from the Gulf Fund for Development, and JD26 million from "other grants."

The budget seeks to increase the coverage of domestic revenues for current expenditures this year to about 88 per cent, compared to 74 per cent last year, in an effort to strengthening self-reliance.

The 2022 budget is the last to be issued by two laws (the general budget and the budgets of government units), after recent constitutional amendments came into force. The amendments stipulated the submission of the draft budget to the Parliament starting from the 2023 fiscal year within one law, including the budgets of government units.