Jordan Cabinet Approves USD13 Billion Budget for 2019

Image used for illustrative purpose. A general view of Amman city shows the turrets of the "Jordan Gate" project. REUTERS/Muhammad Hamed
Image used for illustrative purpose. A general view of Amman city shows the turrets of the "Jordan Gate" project. REUTERS/Muhammad Hamed
TT
20

Jordan Cabinet Approves USD13 Billion Budget for 2019

Image used for illustrative purpose. A general view of Amman city shows the turrets of the "Jordan Gate" project. REUTERS/Muhammad Hamed
Image used for illustrative purpose. A general view of Amman city shows the turrets of the "Jordan Gate" project. REUTERS/Muhammad Hamed

Jordan’s cabinet approved a JOD9.25 billion (USD13 billion) budget for 2019 as part of a reform of public finances to ease the country’s record debt burden and spur economic growth hit by conflict in the region.

The budget, which will be sent to parliament for approval, envisaged a deficit equal to 2 percent of Jordan’s gross domestic product.

The main features of the draft law indicate that the general revenues were estimated at USD12.14 billion with USD11.29 billion as domestic revenues and USD850 million dinars as foreign grants.

Spending of 2019 was estimated at USD13.04 billion, a rise of USD616 million compared to the current year.

The current expenditure increase was 3.3 percent compared to 2018 in what was attributed to normal growth in expenditure related to the annual increase in the salaries of public employees, the increase in allocations of the National Aid Fund, and an upgrade in the share of the healthcare system.

The deficit in the 2019 budget amounted to USD910 million after grants, constituting 2 percent of GDP, down from USD1.15 billion in the re-estimated value for 2018 at 2.7 percent of GDP.

The draft law estimated an increase in financial solvency indicators for the coming year’s budget coverage for public expenditures from 80.1 percent re-estimated value in 2018 to 86.5 percent in 2019. The draft budget law saw a rise in domestic revenues to cover 100 percent of current expenditure, up from 90.8 percent re-estimated value this year.

Jordan's public finances are under strain and the government is struggling to curb a public debt of more than USD37 billion, equivalent to 96 percent of GDP.



Japan Tariff Negotiator Held In-Depth Talks with Lutnick, Japanese Government Says

Commerce Secretary Howard Lutnick listens to Senators speak during a Senate Appropriations hearing, June 4, 2025, on Capitol Hill in Washington. (AP)
Commerce Secretary Howard Lutnick listens to Senators speak during a Senate Appropriations hearing, June 4, 2025, on Capitol Hill in Washington. (AP)
TT
20

Japan Tariff Negotiator Held In-Depth Talks with Lutnick, Japanese Government Says

Commerce Secretary Howard Lutnick listens to Senators speak during a Senate Appropriations hearing, June 4, 2025, on Capitol Hill in Washington. (AP)
Commerce Secretary Howard Lutnick listens to Senators speak during a Senate Appropriations hearing, June 4, 2025, on Capitol Hill in Washington. (AP)

Japan's tariff negotiator Ryosei Akazawa held "in-depth exchanges" over the phone with US Commerce Secretary Howard Lutnick on Thursday and Saturday, the Japanese government said.

A pause on a 24% reciprocal tariff on imports from Japan expires on July 9, although US President Donald Trump has suggested the rate could be even higher.

The Japanese government also said in a statement that it intends to continue actively coordinating with the US side on the matter, as it worked to avert higher tariffs.

The White House declined to comment on the report, referring only to Trump's recent comments on Japan.

Trump this week hammered Japan over what he said was Tokyo's reluctance to import US-grown rice, and accusing Japan of engaging in "unfair" autos trade.

Japan has in fact imported historically high volumes of US rice in recent months as domestically grown rice has skyrocketed in price since last year.

It was unclear if Trump would make good his pledge to skip further trade negotiations with Japan and send it a letter with a specific tariff rate, on top of the 10% already in effect on most trading partners. On Friday he said he had signed letters to 12 countries and they would be going out on Monday, but did not identify them.

He expressed doubt that a deal could be reached with Japan on Tuesday, and suggested he could impose a tariff of 30% or 35% on imports from Japan - well above the 24% tariff rate he announced on April 2.

Japanese Prime Minster Shigeru Ishiba on Wednesday said he was determined to protect his country's national interests as trade negotiations with the US struggled, noting that his country was the largest investor in the United States.

Tokyo has yet to secure a trade deal after nearly three months of negotiations as it scrambles to find ways to get Washington to exempt Japan's automakers from 25% automobile industry-specific tariffs, which are hurting the country's manufacturing sector.