Experts: 2027 Budget paves the way for reprioritizing and improving spending efficiency

The General Budget Department had announced that ministries, departments, and government units have completed the submission of their budget drafts for the 2027 fiscal year, based on the Prime Minister's circular issued in June 2026 regarding the preparation of the General Budget Law.

Financial and economic expert Dr. Mohammad Al-Hadab Al-Sarhan said that preparing the budget on time is not limited to adhering to constitutional procedures, but rather constitutes an opportunity to translate economic trends into allocations that achieve tangible results, especially in light of the requirements for implementing the Economic Modernization Vision, accelerating growth, providing job opportunities, and maintaining financial stability.

He explained that the 2026 budget estimated public expenditures at approximately 13.06 billion dinars, of which 11.46 billion dinars were current expenditures and 1.6 billion dinars were capital expenditures, highlighting the importance of controlling operational expenses and improving institutional productivity, which allows for broader space for investment in development projects without compromising essential spending on health, education, and social protection.

He pointed out that the trend toward reducing operational expenses by 15% during the coming year provides an opportunity to improve the management of procurement, energy, rents, and administrative services, provided that a distinction is made between cost reductions resulting from increased efficiency and cuts that might affect service quality or delay obligations.

He called for linking government institution allocations to performance indicators that measure service quality, speed of completion, and cost, rather than relying solely on spending ratios, while prioritizing capital projects with the highest economic impact, particularly those that reduce transport, energy, and water costs, improve the competitiveness of productive facilities, and attract investments.

He added that preparing the budget within a medium-term framework for the years 2027–2029 allows for a transition toward linking spending to economic and social outcomes by setting measurable goals for government projects, including expected job opportunities and their impact on productivity, investment, and services in the governorates.

He emphasized that the success of the budget will not be measured by the volume of allocations alone, but by its ability to achieve a balance between fiscal discipline and stimulating growth, and translating public resources into productive investments, better services, and sustainable job opportunities.

For his part, economic expert Wajdi Makhamreh said that the completion of budget estimates by government entities represents a fundamental step in reviewing spending and directing resources toward national priorities, noting that reviewing current and capital expenditures allows for curbing unnecessary expenses and enhancing the efficiency of public fund usage, which supports containing the fiscal deficit and limiting the growth of public debt.

He added that directing government investments toward projects with economic returns, especially in the infrastructure, water, energy, and transport sectors, would stimulate growth and attract private investment, provided that allocations are linked to measurable results and the actual needs of citizens and the governorates.

He explained that preparing the budget in conjunction with the system of government ministry and department formations allows for reviewing functional and administrative needs, limiting unjustified expansion in operational expenses, and improving public sector productivity.

Makhamreh stressed that the success of the 2027 budget requires achieving a balance between fiscal sustainability and stimulating economic activity by prioritizing projects capable of creating job opportunities, raising economic competitiveness, and improving services, confirming that cutting expenses alone is not enough if it comes at the expense of productive investment, just as increasing capital spending does not achieve its goals unless projects are implemented efficiently and on time.

In turn, the representative of the garment and textile sector at the Jordan Chamber of Industry, Engineer Ihab Qadri, said that reviewing the budgets of ministries and government institutions represents an important milestone in translating economic priorities into actual decisions regarding the distribution of public resources, in light of limited fiscal space, high current obligations, and the need to accelerate growth.

He added that the challenge is not limited to controlling expenses and maintaining financial stability, but rather lies in raising the economic efficiency of every dinar spent by the state, and distinguishing between necessary operational expenses and spending that creates new productive capacities and stimulates private sector investments.

He pointed out the importance of directing allocations toward projects linked to the Economic Modernization Vision, especially in the infrastructure, energy, water, transport, and vocational training sectors, due to their direct impact on production costs, economic competitiveness, and the ability to attract investments.

He indicated that financial reform is not achieved by cutting spending alone, but by redirecting it toward areas with the highest economic and social returns, while maintaining the quality of basic services and social protection.

Qadri emphasized the necessity of evaluating existing capital projects according to their feasibility and completion rates, warning that delaying productive projects or fragmenting their funding could increase their costs and delay their returns, while increasing capital spending without implementation readiness does not guarantee growth.

He called for adopting realistic revenue and growth estimates, in parallel with improving collection efficiency and expanding economic activity, rather than relying on measures that increase burdens on productive sectors and households.

He concluded by saying that the 2027 budget should be a tool to steer the economy toward higher growth and greater productivity, not just a plan to finance annual expenses, emphasizing that its true value is measured by the sustainable economic impact achieved by public spending and its ability to enhance fiscal sustainability and expand the productive base of the national economy.