Messages from Jordan's Public Finances

After every regional crisis, the same question arises: Has Jordan’s economy remained resilient, or has it been significantly affected? The answer lies not in expectations or perceptions, but in the numbers. A closer look at the government’s financial performance during the first half of 2026 reveals several important messages.

Revenues are growing, capital spending is expanding, and while the fiscal deficit remains a challenge, the combined indicators point to an economy that is gradually regaining momentum.

ccording to preliminary public finance data through the end of June 2026, the first key message is that domestic revenues have become more resilient despite regional instability.

Local revenues reached JD 4.720 billion, compared with JD 4.669 billion during the same period in 2025, an increase of JD 51.6 million.

Compared with the JD 4.504 billion recorded in the first half of 2024, revenues have risen by approximately JD 216 million.

These figures suggest that domestic economic activity is gradually recovering and that the economy has managed to offset part of the impact of regional tensions over the past two years.

The second message comes from tax revenues, which totaled JD 3.456 billion by the end of June 2026, up from JD 3.402 billion a year earlier an increase of JD 53.9 million. More significant than the increase itself is its source.

Sales tax revenues led the growth, rising to JD 2.177 billion from JD 2.113 billion, an increase of JD 64.7 million.

This indicates stronger market activity, particularly in sales linked to imports, reflecting improvements in both trade and consumer spending.

Income tax revenues, however, conveyed a different message.

Collections declined to JD 1.098 billion, compared with JD 1.117 billion in the first half of 2025, a decrease of JD 19.6 million.

This decline may reflect differences in collection timing or weaker performance in certain sectors, suggesting that economic growth has not been evenly distributed across all industries.

It will be important to monitor this trend during the second half of the year.

Meanwhile, customs revenues increased to JD 129.5 million from JD 123.3 million, while real estate transaction tax revenues rose to JD 52 million, compared with JD 49.3 million in the same period last year.

These figures point to improving import activity and continued, albeit moderate, strength in the real estate market, reinforcing the positive signals reflected in sales tax collections.

On the other hand, non-tax revenues recorded only a slight decline, falling to JD 1.264 billion from JD 1.267 billion, a decrease of just JD 2.3 million, which has little impact on the overall revenue trend.

Foreign grants increased significantly, reaching JD 115.8 million, compared with JD 22.1 million during the same period in 2025.

While this is a positive development, grants remain a supporting factor, whereas the strength of domestic revenues continues to be the most important indicator of fiscal resilience.

Another notable message comes from capital expenditure, which rose to JD 561.5 million by the end of June 2026, compared with JD 516.5 million a year earlier an increase of JD 45 million.

Compared with the first half of 2024, capital spending has increased by more than JD 126 million.

This suggests that despite fiscal pressures, the government has not postponed investment projects and has continued financing development initiatives, highlighting that economic growth remains a key fiscal priority.

Despite these encouraging indicators, current expenditure increased to JD 5.509 billion, while interest payments climbed to JD 1.229 billion, pushing total government spending to JD 6.070 billion.

As a result, the fiscal deficit after grants widened to JD 1.234 billion, while the deficit before grants reached JD 1.350 billion.

These figures indicate that the challenge is no longer limited to increasing revenues but also to containing the continued growth in expenditure, particularly the cost of servicing public debt.

The financial data for June 2026 alone also offers an encouraging signal.

Domestic revenues for the month rose to JD 649 million, compared with JD 601.7 million in June 2025, while sales tax collections increased to JD 350 million, up from JD 338.4 million.

This may represent an early indication that easing regional tensions are beginning to translate into stronger economic activity and improved fiscal performance a trend that could become more evident during the second half of the year if current conditions persist.

Ultimately, maintaining this level of fiscal performance amid such challenging regional circumstances is a significant achievement.

It reflects the resilience of Jordan’s public financial management and its ability to navigate regional shocks while minimizing their impact on the national economy.