In government documents, these agencies (39 in 2005) are often referred to as “own-budget” agencies.
The budget of Greater Amman (51 percent of the total) is approved by the prime minister.
These institutions, which do not collect deposits, include four development entities, namely the Industrial Development Bank (IDB), Agriculture Credit Corporation, the Cities and Villages Development Bank, and the Housing and Urban Development Corporation. At end-2002, their total credits amounted to JD 407 million (7 percent of total bank credits).
The Industrial Development Bank currently generates profits.
Up to April 2005, 64 transactions had been completed including the divestiture of the government’s shares in 52 companies under the Jordan Investment Corporation (JIC)’s portfolio. Privatization proceeds have amounted to about US$1,271 million.
These include Central Electricity Generation Company, Electricity Distribution Company, Irbid District Electricity Company, Royal Jordanian Airlines, Jordan Aircraft Limited Company, Jordan General Silos & Supply Company, Postal Services, and Jordan Phosphate Mines Company.
The JIC was created by Law No. 18 of 1991. At end-October 2004, JIC held shares in 48 companies, down from 54 companies during 2000-03. The value of its share portfolio at market value was about JD 180 million (2 percent of GDP).
The government appoints nine of the 15 SSC board members upon recommendations by the minister of labor, who is the chairman of the SSC.
At end-2004, revenues from public companies and autonomous agencies amounted to JD 100 million (1½percent of GDP), of which JD 30 million from the central bank and JD 25.8 million from the JIC.
The WAJ’s losses, which are not covered by government transfers (some ½ percent of GDP), are financed through the issuance of bonds, which are guaranteed and serviced by the central government.
The subsidy to the refinery is recorded on a net basis, because there are cross subsidies from gasoline (whose prices are above world prices) to other fuels. Best practice would be to record nontax revenue from gasoline and the total amount of fuel subsidies in the budget on a gross basis.
For example, see the case of Assamra Water Treatment Plant.
Law No. 25 of 2000.
However, there is no framework for addressing complaints that might be raised by unsuccessful bidders.
Law No. 1 of 1989.
Law No. 16 of 1995 (and amendments of 2000).
Law No. 32 of 2000.
Law No. 30 of 2003.
Law No. 23 of the CBJ of 1971, as amended in 1989, 1991, and 1992.
The 2001 Public Debt Law discontinued the provision of central bank facilities. However, the ceiling of central bank advances (JD 803 million) established under a memorandum of understanding between the MOF and the CBJ was breached in early 2005.
At end-2003, CBJ’s participations to Agriculture Credit Corporation, Cities and Village Development Bank, Jordan Loan Guarantee Corporation, and Jordan Mortgage Refinance Company amounted to JD 6.9 million.
At end-2003, outstanding CBJ advances to banks under liquidation (Petra Bank and National Islamic Bank) and other ailing commercial banks (Philadelphia Bank and Jordan Gulf Bank) amounted to 5.4 percent of GDP.
The CBJ is represented in the IDB’s board of directors, even if it is not a shareholder.
The establishment of the deposit insurance corporation (Law No. 33 of 2000) should help eliminate the resort to CBJ special facilities.
As promulgated in 1952 and amended later, including in 1974, 1976, and 1984.
Law No. 29 of 1955.
Municipalities receive a number of taxes, levies and fees, including property taxes, license fees for small businesses, and traffic violation fines. Owing to weak technical capacities, only 7 municipalities collect the property tax; property taxes for the others are collected by the MOF on their behalf, in accordance with a special arrangement, which entails a collection fee of 10 percent for the MOF.
Law No. 12 of 1994 removed a number of tasks from the original list.
The authorities are envisaging a far-reaching regional decentralization under the national agenda, which would strengthen the powers of local governments, including the capacity to collect all taxes, and to provide all services. The reform is expected to be initiated in 2006.
By-Law No. 3 of 1994 (and amendments).
There is a small discrepancy in the definition of autonomous agencies between the fiscal data and the debt data. Data on net domestic debt include some deposits of the SSC in autonomous agencies, while the fiscal data exclude the SSC from the consolidated central government.
The tax and customs department are allowed by law to retain part of collected revenue (usually penalties and confiscated goods) for incentives and social funds for employees.
Article 29 of the Income Tax Law allows direct discussions between the assessing officer and the taxpayer.
An income tax withholding tax of 2 percent on imports was introduced in July 2003. Since early 2004, taxpayers certified as tax-compliant by ISTD are exempted from this tax.
However, the tax administration has no ability to write off uncollectible tax arrears.
The settlement of the GST complaints through the customs court stems from the fact that the GST was originally managed by the customs department.
Civil Service Regulations (1) of 1998.
In the last two years, the draft budget law was submitted to parliament in mid-December and approved in February. According to the constitution, the draft budget should be submitted to parliament one month before the beginning of the fiscal year and it should be approved before the fiscal year starts.
The breakdown of current expenditure includes three categories: nondefense, defense, and other expenditures. A line item “public expenditure” is also part of the category of other expenditures.
Education spending, for example, is misleading because it includes administrative spending of the ministry of education, but does not include the education spending financed by external loans, which is classified under the budget of the MOP.
Such as off-budget defense spending financed by U.S. grants.
Local spending represents approximately 7 percent of total central government spending (see Box 1).
According to this law and a decision of the cabinet, the total public debt should be below 80 percent of GDP by the end of 2006.
The impact of particular policy changes on the GST is difficult to assess due to the fact that the GST is aggregated with the special sales tax (namely excises), and it does not allow differentiation by type of products.
The institute of internal auditors: International standards for the professional practice of internal audit, (revised) 2004.
Important progress in this area is expected due to the creation of a steering committee under the director of cash management to supervise the development and implementation of an annual financial plan.
Governed by the Supplies Act 32 of 1993.
The management of procurement activities above JD 20,000 is the responsibility of the Government Tender Directorate of the Ministry of Public Works and the General Supplies Department of the MOF.
Excluded from tendering are procurement activities below JD 20,000 and military equipment linked to security purposes.
The government has launched the e-procurement initiative as part of the financial management reform to streamline the procurement processes, make them more transparent, reduce transaction costs, and enhance the competitiveness among suppliers for its procurement.
The term “civil service” in Jordan refers to non-uniformed employees of the central administration as well as employees from autonomous agencies.
Civil Service Statute No 55 of 2002.
Staff from the AB and the Prime Minister Office, among others, are not covered by this statute.
The General Budget Department also receives monthly budget execution reports from autonomous agencies.
The budgets of the 39 autonomous agencies are now presented for information and published in Autonomous Budget Organizations, a document compiled by the General Budget Directorate for the 2005 fiscal year. The document also includes a consolidated budget for these 39 entities.
Summary monthly tables on the central, and more recently general, government fiscal outturn are published at http://www.mof.gov.io.
Gross debt data are published in the monthly Government Finance Bulletin (GFB) as well as in the Public Debt Department’s Quarterly Bulletin, both available at http://www.mof.gov.io.
The bulletin follows GFS 2001 revenue and spending classification and presents financial operations of the central government units covered by the budget, central government units with individual budgets, and local governments. It also includes a table of main economic indicators, a guide to the methodology and statistical concepts, charts, and memorandum items.
The GDDS was approved by the IMF Executive Board in December 1997. The principal goal of the GDDS is to assist countries in the development of their overall statistical systems. The emphasis is on the quality of the data and the dissemination practices for economic, financial, and sociodemographic statistics.
The SDDS was established by the IMF to guide members that have, or that might seek, access to international capital markets in the provision of their economic and financial data to the public.
Law No. 28 of 1952.
The AB plans to reduce within the next two years the number of staff members to 350.
Law no 24 of 1950.
By-law No.8 of 2003.
Under this alternative, the budget law would establish qualitative and quantitative limits for the cabinet to issue guarantees and approve tax concessions and sales/donations of government properties.