30 dinars monthly increase for employees and retirees in the 2027 budget

Under the circular, all ministries, departments, and government units are required to prepare their draft budgets for the years 2027-2029 in detail, in accordance with their specified ceilings, and to provide them to the General Budget Department no later than November 5, 2026, while including capital projects for the governorates.

The issuance of the circular comes as a prelude to finalizing the draft General Budget Law, discussing it, and proceeding with approval procedures in accordance with the provisions of the Constitution, in conjunction with the preparation of the draft staffing system for ministries, departments, and government units.

The preparation of the budget is based on Royal directives to complete the implementation of the second phase of the Economic Modernization Vision and Public Sector Modernization for the years 2026-2029, achieve comprehensive and sustainable growth, improve the quality of life for citizens, alleviate living burdens, strengthen the social protection network, and continue financial and economic reforms and reduce public debt.

Budget Trends

The government intends to enhance capital spending and spending on social protection programs, rationalize and control public expenditures to ensure optimal use of available resources, stimulate economic sectors, continue implementing initiatives and projects related to the Economic Modernization Vision and Public Sector Modernization, and enhance local revenues.

The trends include continuing the implementation of the second executive programs for the Economic Modernization Vision and Public Sector Modernization, achieving the targets of the National Program for Financial and Economic Reform, and improving the standard of living for citizens and empowering them to face economic and living conditions.

They also include continuing to reduce the primary deficit and public debt as a percentage of GDP, developing the capabilities of the armed forces and security services, encouraging local investments and attracting foreign investments, improving the business environment, and prioritizing public-private partnership projects, especially in the infrastructure, water, transport, energy, and health sectors.

The trends give attention to the developmental needs of the governorates, upgrading health services, expanding the health insurance umbrella, developing education and human resources, training teachers, developing early childhood programs, completing the construction and rehabilitation of schools, and expanding free school transportation.

They also include developing the social care and protection system, continuing the implementation of the economic empowerment policy for National Aid Fund beneficiaries, enhancing food security and the strategic reserve of goods, supporting local production, advancing the tourism and industrial sectors, and developing transport, water, and energy services.

The trends also include continuing digital transformation, developing government services and enhancing cybersecurity, supporting municipalities and alleviating their financial burdens, and accelerating the implementation of projects related to grants and aid provided by countries and international institutions.

Economic Indicator Forecasts

The 2027 budget was based on a projected GDP growth at constant prices of 3.1%, and 3% for both 2028 and 2029, while nominal GDP is expected to grow by 5.6% for 2027 and 5.5% for both 2028 and 2029.

Forecasts indicate that the inflation rate will reach 2.3% for 2027 and 2.2% for both 2028 and 2029, and exports will grow by 9.2% in 2027, 7.7% in 2028, and 7.2% in 2029.

Imports are also expected to grow by 8.2% in 2027, 4.3% in 2028, and 5% in 2029, while the current account deficit of the balance of payments is estimated at about 5.7% of GDP in 2027, falling to 5% in 2028 and 4.7% in 2029.

Financial Assumptions and Procedures

The financial assumptions include earmarking the necessary allocations for the projects of the second executive program for the Economic Modernization Vision and Public Sector Modernization, the additional salary increase of 30 dinars per month for those whose gross salaries are less than 600 dinars, as well as the natural annual increase in salaries and retirement allocations.

The circular also stipulated restricting appointments to vacant and newly created positions in the staffing system for ministries, departments, and government units, in accordance with the instructions for quantitative and objective assessment and analysis of public sector jobs.

The procedures include earmarking the necessary allocations to support and develop the armed forces and security services, introducing modern technologies and smart systems into their work, covering internal and external public debt interest, controlling expenditures, rationalizing the use of fuel, electricity, water, stationery, and travel, and controlling the use of government vehicles.

They also include earmarking allocations to support strategic commodities, continuing to fix the price of bread and gas cylinders, enhancing the strategic reserve of wheat and barley, supporting the National Aid Fund, covering medical treatments, medicines, and medical supplies and cancer patient treatment, and expanding the health insurance umbrella.

The allocations also include supplying industrial cities with natural gas, public-private partnership projects, led by the government’s contribution to the National Water Carrier and railway projects, capital budgets for governorates, municipal development, supporting universities, and increasing allocations for the Student Support Fund.

They also include financing strategic projects in the water, energy, transport, health, and education sectors, promoting the tourism sector, supporting digital transformation, developing infrastructure, operating systems, and software, employing artificial intelligence tools, and enhancing cybersecurity, in addition to covering financial obligations, arrears, and expropriations.

The circular stipulated earmarking allocations for major new projects for 2027 after registering them in the National Registry for Government Investment Projects and approving them by the Ministry of Planning and International Cooperation, while including studies to assess the impact and risks related to climate.

The procedures also include following up on the implementation of projects stemming from the Jordanian National Strategy for Women, improving the budget’s responsiveness to the needs of both genders, covering obligations contained in grant program agreements with international entities, and not purchasing user services except in justified cases and with the approval of the Prime Minister.

Requirements for Preparing Budget Drafts

The circular obligated ministries, departments, and government units to update their strategic plans, including the vision, mission, goals, programs, and tasks, and to state their contribution to achieving national goals.

Performance measurement indicators, evidence-based data, values achieved during the past year, initial assessment of targeted indicators for 2026, and indicators to be achieved during 2027-2029 must also be included.

It is also required to define the goals of each program, the services it provides, the parties responsible for their implementation, the challenges facing the programs and the proposed measures to address them, and to state the numbers of human resources and their distribution by gender and programs.

The circular stressed taking into account indicators related to the needs of women, children, youth, and people with disabilities, and linking them to related strategic goals and programs, in addition to defining climate change priorities, the measures required to achieve them, and the results expected from them.

The circular emphasized the need for ministries, departments, and government units to adhere to the specified instructions and ceilings, which contributes to achieving the goals of fiscal policy and controlling the financial deficit and public debt growth rates during the years 2027-2029.