Improvement of Financial Performance In 2016
1/25/2017 3:00:00 PM
The kingdom's total public debt, at the end of 2016, has reached about 26.1 billion dinars compared to the estimated JD 26.4 billion according to the General Budget Law, yielding a JD 300 million decrease.
According to a statement released on Saturday, the preliminary financial statements for 2016 on the general financial performance shows a decline of public debt to GDP at 94.9 percent, assuming that nominal GDP for 2016 growth would reach up to 3.3 percent or 2 percent real growth. Also, it was expected that the ratio of public debt to GDP to reach up to 95.1 percent according to the IMF estimates, assuming a 3.9 percent nominal growth rate, i.e. a rate of 2.4 percent real growth.
With regard to the growth of general public debt at the end of 2016 compared to 2015, preliminary data showed a decline in the growth of general public debt ratio at the end of 2016 to be about 5%, compared to the growth rate reached 9.8 % at the end of 2015.
The initial actual budget deficit reached to JD 856 million, compared to estimated deficit at about JD 907 million in the Budget Law, which was re-estimated at the value of JD 1.1 billion, benefiting from the government's adopted measures on both public revenues, and expenditures.
It is noteworthy that the 2016 fiscal improvement according to the demonstrated overall financial indicators and compared to estimated indicators for this year and despite the political and security challenges and circumstances in the region, is due to a series of government actions that have been taken to control and conserve government spending for ongoing expenses and the use of modern technologies to improve the collection of general revenues combined with modernized supervision mechanisms. In addition to above, the drop in currency exchange rates decreased around JD 22 million from general debt balance.