- Jordan’s fiscal deficit widened by 15% in the first half of 2014 compared to the same period of 2013, to reach JD 354 million for the January-June period.
- The JD 45 million increase in the budget deficit was a result of a JD 361 million increase in total expenditure which offset a JD 316 million increase in total revenues and grants.
- Domestic revenues increased in the first half of 2014 by 18% compared to the same period of 2013, increasing by JD 458 million. The higher revenues offset the increase in current expenditures, which grew by 10% or JD 298 million.
- However, a 33% 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.
- Though if foreign grants are excluded, then the fiscal balance has narrowed in the first half of 2014 by 13%, outperforming official forecasts for the 2014 budget.
- Nevertheless, it is better to remain cautious seeing that it is the norm for the budget balance to do well in the first few months of the year, and then deteriorate towards the end of the year.
- Meanwhile, net public debt reached JD 20.1 billion in June, compared to JD 19.1 billion at the end of 2013, increasing by JD 996 million; net public debt reached 78.5% of 2014 GDP.
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