Local revenues up by 18.7% in first 10 months of 2021 — Finance Ministry

AMMAN — Local revenues increased by 18.7 per cent or JD963.1 million in the first 10 months of 2021, mainly due to an increase of JD582.2 million in tax collections, the Ministry of Finance said on Tuesday.

Non-tax revenue also increased by JD380.9 million in the January-October period compared with the figure recorded in the same period of 2020, the Jordan News Agency, Petra, reported. 

The ministry said that these figures reflect “a prudent financial policy and a structural, legislative and administrative approach” to combating tax and customs evasion and avoidance.

Gross income tax collections in the 10-month period picked up by 7.5 per cent to JD1.08 billion against JD1.004 billion in the same period of 2020, the ministry noted.

The increase in non-tax revenues was mainly driven by higher goods and services sales, which amounted to JD695 million, signalling an increase of 39.3 per cent from the JD499 million reported in the same period of 2020.

As for public expenditure, it increased by 8.2 per cent or JD605.8 million in the reporting period mainly due to higher capital spending that increased by 62.4 per cent or JD297 million. 

Also, current spending rose up by 4.5 per cent in the January-October period of 2021.

Accordingly, the ministry said, the post-foreign aid budget deficit dropped by JD255.1 million to about JD1.283 billion.

The ministry said that spending on capital projects during the third and fourth quarters is usually higher due to the project cycle that starts in the third quarter; as a result post-grant deficit witnessed a decrease of some JD225.1 million to JD1.283 billion in the January-October period of 2021.