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Jordan's new gov't announces plan for cutting public spending

Source: Xinhua| 2018-06-20 01:15:14|Editor: zh
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JORDAN-AMMAN-PLAN-PUBLIC SPENDING-CUTTING

Jordanian Prime Minister Omar Razzaz attends a news conference in Amman, Jordan, on June 19, 2018. Jordan's newly formed government announced a plan on Tuesday to cut public spending by 150 million dinars (about 210 million U.S. dollars) this year. (Xinhua/Mohammad Abu Ghosh)

AMMAN, June 19 (Xinhua) -- Jordan's newly formed government announced a plan on Tuesday to cut public spending by 150 million dinars (about 210 million U.S. dollars) this year.

"It is unacceptable whenever there is weak economic growth and there is a decline in revenues that we resort to imposing taxes, the priority should be for cutting public spending," Prime Minister Omar Razzaz told a press conference in Amman.

The premier said the Ministry of Finance has prepared a report on reducing spending by all ministries and independent public agencies and institutions by 150 million dinars during 2018.

Razzaz said the step will reduce the country's reliance on imposing taxes.

He said the government will immediately embark on a national dialogue about the income tax draft bill.

"There will be a comprehensive revision of the overall tax structure and the tax burden with focus on the income tax draft bill to ensure justice," he said, promising transparency to ensure accountability.

The income tax bill triggered nationwide protests that resulted in the resignation of the government of former Prime Minister Hani Mulki.

Razzaz also said Jordan is committed to an extended fund facility (EFF) with the International Monetary Fund. In 2016, the IMF approved a loan of 700 million U.S. dollars to Jordan under the EFF in 2016.

Under the new deal, the government and the IMF agreed on six conditions that aim at reducing public debt to safe levels and stimulating the economy.

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