Jordan revises budget after $650 mln social package
Jordan has revised its 2011 budget to cover a new package of social aid pushing up its deficit.
February 27, 2011 3:24 by Reuters
Jordan has revised its 2011 budget to cover a new package of social aid pushing up its deficit slightly but new savings will keep a key fiscal consolidation plan on track, the finance minister said on Sunday.
Mohammad Abu Hammour told Reuters a $650 million package approved last month following protests over food prices across the Middle East would push the 2011 budget deficit estimate to 1.160 billion dinars ($1.636 billion) or 5.5 percent of gross domestic product (GDP) against an earlier 5 percent target.
Overall state spending would rise by just 130 million dinars to 6.369 bln dinars ($8.98 bln) in a newly revised budget due to substantial cuts in capital spending and projections of higher foreign aid and revenues, Abu Hammour added.
(Writing by Suleiman al-Khalidi; Editing by Jane Merriman)