According to official data and statements from the Ministry of Finance, Jordan's Finance Minister Abdul Hakim Al-Shibli confirmed that the 2026 budget project embodies the second phase of the Economic Modernization Vision, focusing on executing high-quality projects in vital sectors such as energy, water, tourism, education, health, transport, and communications.

These statements were made during a session of the House of Representatives chaired by Muzin Al-Qadi, attended by Prime Minister Jaafar Hassan and government members. Minister Al-Shibli emphasized that fiscal discipline policies and the reforms in place have helped keep the deficit within safe levels according to international standards.

Focus on Infrastructure and Basic Services Projects

The Minister clarified that the 2026 budget gives clear priority to educational and health projects, in line with royal directives. The plan includes:

• 191 projects for the Ministry of Education

• 71 new schools under construction

• 71 million Jordanian dinars allocated for health sector projects, including building new hospitals and centers and expanding existing facilities.

He also noted the commencement of work on the Madaba Government Hospital in partnership with the private sector, which will serve as a model for future health projects.

Resilient Economy and Strong Performance Indicators

The Minister reviewed key indicators of the Jordanian economy for 2025, reflecting financial stability and effective management of regional challenges:

• Economic growth: 2.7% in Q1 and 2.8% in Q2 – the highest level in two years.

• Inflation: stable at 1.9% over the first 10 months.

• Foreign currency reserves: 24.6 billion dollars (enough to cover 9 months of imports).

• Increase in foreign direct investment: +36% to nearly one billion dollars.

• Growth in national exports: +9.1%.

• Tourism revenues: 6.6 billion dollars (+6.5%).

• Remittances from expatriates: +4.1%.

The current account deficit also decreased to 7.4% in H1 2025, with expectations of improvement to 5.1% by year-end.

Improving Statistical Framework and Raising GDP Value

The Minister revealed the completion of a comprehensive review of GDP accounts in collaboration with the International Monetary Fund and ESCWA, resulting in an increase in the 2023 GDP value by approximately 3.6 billion dinars.

• This adjustment enhances:

• The government's ability to reduce the debt-to-GDP ratio.

• Improving the accuracy of financial indicators.

• Enhancing transparency in budget preparation.

Deficit and Public Debt Within Safe Limits

Minister Al-Shibli clarified that:

• Budget deficit after grants: about 5.2% of GDP.

• Primary deficit: 1.9%.

• Projected public debt for 2025:

  • 83.4% of GDP (excluding social security debts).

  • 108.3% (including social security debts).

He noted that the current spending structure needs gradual reform, as salaries, pensions, and debt servicing constitute a significant portion of expenditures.

Improvement in Revenues and Reducing Dependence on Aid

The government expects an increase in local revenue coverage of current expenditures to:

• 89% in 2026.

• 94% by 2028.

Income tax revenues will also increase to constitute 25% of total taxes, with a gradual decline in reliance on sales tax.

Addressing Financial Arrears

The government is working to clear arrears exceeding one billion dinars, particularly in the sectors of:

• Energy.

• Water.

• Healthcare for uninsured citizens.

So far, 320 million dinars have been paid to hospitals, universities, pharmaceutical companies, and service institutions.

Optimistic Growth Forecasts Until 2028

In conclusion, the Minister stated that the 2026 budget has a balanced developmental and social character, and that economic reforms will push the growth rate to exceed:

• 3% in 2026.

• 4% by 2028.

Supported by larger partnerships with the private sector and expanding the investment base.

EcoPulse24 Analysis

The 2026 budget project reflects a clear direction towards enhancing financial stability by directing greater resources to health, education, and infrastructure sectors, which are directly linked to the quality of long-term growth. Three key points emerge:

1. Financial stability improves despite regional pressures

The economic indicators - growth, low inflation, strong reserves - suggest relative resilience of the Jordanian economy compared to regional countries.

2. Shift towards productive spending

Increased capital spending in health and education shows a trend towards building a long-term developmental structure rather than mere operational spending.

3. The biggest challenge: Enhancing local revenues

Raising the revenue coverage ratio for current expenditures will reduce dependence on external aid, a strategic step to ensure long-term financial independence.

Summary:
The 2026 budget sends a message of confidence to investors and creditors, but it requires continued fiscal discipline and the development of the business environment to elevate growth to targeted levels by 2033.