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FINANCIAL NEWS
Jordan posts 34% drop in budget deficit
24 Nov 2010
(MENAFN) Jordan�s Ministry of Finance ministry announced that the Kingdom�s budget deficit for the January-September period of the current year, contracted by 34 percent, compared to the corresponding period a year earlier, as a result of improved revenues and a freeze on non-essential capital spending, Reuter reported.
According to the ministry, the shortfall contracted from $1.2 billion in 2009, to reach $801 million in 2010.
The figures come as a result of authorities having ditched tens of millions of dollars worth of non-essential capital projects as part of austerity measures to slash the 2010 deficit to around 6 percent of gross domestic product (GDP) and help Jordan’s economy ride out the global downturn.
Official data showed total state revenues, which include general sales tax, income taxes and foreign grants, increased 6 percent to $4.9 billion, year on year.
Most of the savings came from a sharp drop in capital expenditure by $381.5 million in the first nine months of 2010 against the same period 2009, the data showed.
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