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FINANCIAL NEWS
Jordan’s H1 deficit at USD366m
18 Aug 2011
(MENAFN) According to finance ministry sources, the budget deficit in Jordan increased 55 percent in the first half of the current year as a result an increase in energy bills, reported Arab News.
The budget deficit increased to USD366 million, up from last year’s USD235.1 million.
Even though the country’s social expenses went up along with its oil expenses, the government is seeking to maintain the deficit at 5.5 percent of gross domestic product (GDP).
External financial support had played an important role in easing the financial pressure off almost half of the budget deficit. Main donating country included Japan, US, EU and Saudi Arabia.
It is worth noting that the suspension of Egyptian gas imports to Jordan took its toll on the country’s oil expenses, as Egyptian gas accounted for 80 percent of Jordan’s electricity generation. This had Jordan to use the expensive imported diesel as the only solution to meet the electricity needs of the country.
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