The International Monetary Fund (IMF) has disbursed $39 million in credit facilities to Jordan, commending the kingdom's economic performance, reported the Jordan Times newspaper.
But it recommended a sustained reduction in the 2001 fiscal deficit.
Completing its third revision of the kingdom's performance under the three-year IMF-backed economic and structural reform program, the fund urged the government to tighten the belt on expenditure and increase tax revenues by broadening the tax base and regularly making adjustments to oil prices.
“Real growth has picked up, the public debt ratio has declined significantly, international reserves have risen to a comfortable level, and interest rates have fallen,” said Stanley Fischer, the IMF executive board first deputy managing director and acting chairman.
“These successes reflect the authorities' pursuit of prudent macroeconomic policies and implementation of wide-ranging structural reforms, including the introduction of a VAT and the pursuit of their privatization program,” added Fischer in a statement, cited by the paper.
However, he said “the shortfall in non-tax revenue items in 2000 resulted in a widening of the fiscal deficit.”
Official figures showed that Jordan's budget deficit, before grants, rose to JD438.7 million by end of 2000, as compared to JD422.1 million recorded by end of 1999.
(JD1=$1.2)
The same figures revealed that non-tax revenues last year dropped by 16 percent to JD604 million – Albawaba.com
© 2001 Al Bawaba (www.albawaba.com)
