- Jordan’s fiscal deficit widened by around 20% in the first eight months of 2014 compared to the same period of 2013, to reach JD 591 million for the January-August period.
- The JD 99 million increase in the budget deficit was a result of a JD 589 million increase in total expenditure which offset a JD 490 million increase in total revenues and grants.
- Domestic revenues increased in the first eight months of 2014 by around 16% compared to the same period of 2013, increasing by JD 546 million. The higher revenues offset the increase in current expenditures, which grew by around 13% or JD 498 million.
- However, an 11% decrease in foreign grants and a 20% increase in capital expenditures helped to widen the fiscal deficit.
- The budget balance data seem to be underperforming the official forecasts for the 2014 budget, as the fiscal deficit including grants is expected to narrow compared to the previous year, to a deficit of 4.3% of GDP.
- Meanwhile, budget deficit excluding foreign grants reversed its narrowing trend, widening by 4.2% in the first eight months of 2014.
- While the budget deficit could narrow in the coming months as foreign grants are committed, it is better to remain cautious seeing that it is the norm for the budget balance to deteriorate further towards the end of the year.
- Meanwhile, net public debt reached JD 20.4 billion in August, increasing by JD 1,300 million; net public debt reached 79.7% of 2014 GDP.
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