Raad Mahmoud Al-Tal

The public finance figures for the first five months of 2026 send a positive message about the Jordanian economy. Despite the difficult regional situation, Jordan has managed to maintain and slightly increase its domestic revenues. This shows that the economy continues to have a good level of stability and resilience. Domestic revenues reached about JD5.703 billion in the first five months of 2026, compared with JD5.634 billion during the same period in 2025. This is an increase of about JD69.5 million, or 1.2 per cent.

At first, 1.2 per cent may not look like a large increase. But it becomes more meaningful when we consider the difficult conditions in the region and their impact on trade, tourism, investment, and business activity. Tax revenues also improved. They reached about JD3.055 billion, compared with JD3.018 billion in the same period of 2025. This means an increase of nearly JD37 million. Other domestic revenues also increased from about JD1.595 billion to JD1.629 billion, an increase of around JD35 million. This is important because the increase in domestic revenues did not come from one source only. Several sources contributed to the improvement.

External grants also increased from about JD25.3 million to JD100.1 million. As a result, total revenues and grants increased from about JD5.659 billion to JD5.803 billion, an increase of around JD144 million. However, domestic revenues are more important from a long-term perspective. They show the country’s ability to finance its needs from its own economy. The stronger domestic revenues are, the better the government’s ability to deal with external shocks.

Another positive point is the relationship between domestic revenues and current expenditure. Current expenditure reached about JD5.692 billion during the first five months of 2026, while domestic revenues reached JD5.703 billion. This means that domestic revenues covered about 100.2 per cent of current expenditure.

In the same period of 2025, domestic revenues covered around 104.5 per cent of current expenditure. Although the margin has become smaller, the government is still able to cover almost all of its current spending from domestic revenues. At the same time, total government expenditure increased from JD5.833 billion to JD6.148 billion, an increase of about JD315 million, or 5.4 per cent. This is higher than the 1.2 per cent growth in domestic revenues and therefore deserves attention.

Some government spending can also be affected by external factors, including oil and energy prices. Higher energy prices can increase the cost of fuel, transportation, government operations, and public services. This means that not all increases in government spending are the result of domestic policy decisions.

Current expenditure increased by about JD302 million, from JD5.390 billion to JD5.692 billion. Capital expenditure, however, increased by only about JD13.8 million, from JD442.3 million to JD456.1 million. This is an important point for fiscal policy. Improving public finances does not simply mean cutting government spending. It means making better use of public money and gradually directing more resources toward investment and projects that increase the economy’s productive capacity.

The deficit after grants increased from about JD173.6 million to JD344.8 million during the same period. This remains an issue that needs to be monitored. However, Jordan’s relatively strong domestic revenue base gives the government room to address the deficit through better spending efficiency and stronger economic growth, rather than relying mainly on higher taxes.

The main message from these figures is not that Jordan has solved all its economic challenges. Rather, it is that the economy has shown a real ability to withstand difficult conditions. The increase in total revenues and grants to around JD5.8 billion, compared with about JD5.66 billion a year earlier, confirms that public finances continue to generate resources despite the challenges.

Jordan’s next step should not be simply to collect more revenue. The bigger goal should be to build a more productive economy, attract more investment, increase exports, improve productivity, and create more jobs. If these factors lead to stronger and more sustainable growth, government revenues will naturally increase as the economy becomes stronger.

The increase of JD69.5 million in domestic revenues may look small compared with the size of the economy. But its meaning is much larger than the number itself. It shows that the Jordanian economy is still able to generate revenues and maintain its fiscal capacity despite difficult regional conditions.

This may be the most important message in these figures: economic resilience does not always appear in large numbers. Sometimes, it appears in the ability of an economy to maintain its balance when the conditions around it are difficult. That is a small signal, but it carries a big meaning.