* Spending Cut Reflects Systemic Fiscal Discipline Measures and Process Optimization
* Savings Span Building Leases, Public Utilities, Telecommunications, Insurance, Fleet Maintenance, and Office Supplies with Reductions Ranging Between 7% and 45.2% Driven by Accelerated Digitalization
* Greater Amman Municipality’s Smart Lighting Infrastructure Yields Up to 50% Reduction in Energy Consumption
* Merger of Civil and Military Consumer Corporations Streamlines Operating Costs and Enhances Service Quality
* Digital Pharmaceutical Inventory Management System Delivers JOD 3.099M in Savings Over Seven Months
AMMAN, Oct. 17 (Petra) – Ministries and public entities reduced their operational expenditures by JOD 94 million (USD 132.5 million) during the first nine months of 2026, marking a 21.5 percent saving against the period's allocated budget, according to a report released Saturday by the Ministry of Finance.
Actual operational spending stood at JOD 343.2 million against an allocated nine-month benchmark of JOD 437.1 million, drawn from an overall annual operational budget of JOD 582.8 million.
Finance Ministry data indicates that spending reductions spanned multiple administrative categories–including rental contracts, public utilities, fuel and fleet operations, furniture maintenance, and office supplies–with savings across various line items ranging between 7.0 percent and 45.2 percent.
The highest percentage of savings was recorded in stationery, printing, and office supplies, where expenditures fell 45.2 percent to generate a JOD 13.3 million surplus. Actual spending reached JOD 16.1 million out of an allocated JOD 29.4 million, directly driven by the widespread digitalization of government processes and public services.
Electricity expenditures registered the second-highest reduction, declining 28.9 percent to yield JOD 10.5 million in savings. Actual utility outlays stood at JOD 25.8 million against an allocated JOD 36.3 million, underpinned by expanded solar energy generation and the deployment of smart street lighting.
Property usage expenses dropped 27.8 percent, saving JOD 500,000 with total spending of JOD 1.3 million against an allocated JOD 1.8 million. Rental outlays fell 21.9 percent to yield JOD 3.5 million in savings, totaling JOD 12.3 million against a budget of JOD 15.8 million, primarily driven by relinquishing rented school facilities.
General services outlays declined 21.8 percent, saving JOD 34.7 million with actual spending of JOD 124.5 million against an allocated JOD 159.2 million.
Telecommunication expenses dropped 20.5 percent to JOD 3.1 million against a budgeted JOD 3.9 million, while raw material expenditures fell 19.9 percent to JOD 107.7 million against a JOD 134.4 million allocation, saving JOD 26.7 million.
Insurance costs declined 17.7 percent to JOD 2.9 million against an allocated JOD 3.5 million, saving JOD 600,000. Machinery and furniture maintenance expenses dropped 17.6 percent to JOD 6.8 million against a JOD 8.3 million allocation, saving JOD 1.5 million. Meanwhile, fleet and vehicle operating costs fell 7.7 percent to JOD 3.6 million against an allocated JOD 3.9 million.
The cost-efficiency drive follows executive directives issued earlier this year by Prime Minister Jafar Hassan instructing government agencies to rationalize spending. Building on these results, the Prime Minister directed the Minister of Finance to construct a comprehensive framework aimed at cutting operational expenses across all civil and independent government entities by an additional 15 percent in the upcoming fiscal year.
In parallel structural reforms, the Greater Amman Municipality (GAM) is executing its 2026 Smart Lighting Project to replace 32,500 conventional streetlamps with automated LED units across major thoroughfares, bridges, and tunnels. With 24,025 units installed through September, GAM projects a 50 percent reduction in energy consumption alongside lower maintenance costs.
Furthermore, the ongoing merger of the Civil Consumer Corporation into the Military Consumer Corporation aims to consolidate administrative, procurement, warehousing, and distribution logistics to optimize supply chain costs and eliminate institutional redundancies.
In the healthcare sector, the implementation of an electronic pharmaceutical inventory management system generated JOD 3.099 million in savings between April and October 2025 by tracking drug distribution from central depots to hospitals and health centers, curbing waste and optimizing prescription protocols.
//Petra// AA
