Amman, November 5 (Petra) – The Cabinet on Wednesday approved the draft general budget law for the fiscal year 2026, paving the way for its submission to the National Assembly in accordance with constitutional procedures.
Presenting the main features of the draft law, Finance Minister Abdulhakim Shibli said real economic growth is projected to rise from 2.7% in 2025 to 2.9% in 2026 and exceed 3% in 2027 and 2028, driven by the launch of major capital projects such as the National Water Desalination Project, the railway project and gas exploration and transport projects.
Inflation is expected to remain stable at around 2% during 2026–2028, one of the lowest rates in the region.
Based on updated revenue and expenditure projections, the total budget deficit is expected to decline to about JD 2.125 billion (4.6% of GDP) in 2026, down from the estimated JD 2.258 billion (5.2%) in 2025.
Economic and Financial Objectives The 2026 general budget aims to: Implement the requirements of the Economic Modernisation Vision and its strategic projects as part of a long-term national plan; Continue the economic and fiscal reform programme to strengthen financial and economic sustainability; Gradually reduce the overall deficit and public debt as a share of GDP; Enhance the coverage of current expenditures through domestic revenues; Maintain subsidies for bread and cooking gas, fund social protection programmes and cover cancer treatment for Jordanian patients.
Key Budget Indicators The 2026 draft budget projects domestic revenues at JD 10.196 billion, supported by stronger economic growth. The 2025 revenue forecast was revised downward by JD 200 million due to regional instability and potential geopolitical risks.
Current expenditures are expected to rise to JD 11.456 billion, reflecting higher operational costs, salaries and funding for new vacancies across ministries and government departments, in addition to continued support for the armed forces and security agencies.
Interest payments are estimated at JD 2.26 billion, slightly lower than expected, due to the government's debt management strategy that replaces high-cost loans with lower-interest financing.
The draft budget includes support packages totaling JD 655 million for various sectors, including: JD 124 million for the national cancer insurance program, covering around 4.1 million citizens; JD 80 million for subsidised gas cylinders (up from JD 63 million); JD 280 million for social protection programmes; JD 170 million for bread and animal feed subsidies.
Allocations for the purchase of medicines and medical supplies were also raised to about JD 135 million.
Capital Expenditures Capital expenditures in the 2026 draft budget increased to JD 1.6 billion, compared with a revised estimate of JD 1.37 billion in 2025, to fund key national development projects, including: JD 396 million for Economic Modernisation Vision projects; JD 60 million for the National Water Carrier Project; JD 35 million for the Risha Gas Exploration Project; JD 210 million to support municipal development, up from JD 180 million.
The draft budget reflects the government's commitment to achieving balanced economic growth, enhancing fiscal discipline and supporting priority sectors to sustain development and improve the quality of public services.
//Petra// AK
