World Bank2013-04-222013-04-222012-11https://hdl.handle.net/10986/13251This report aims to provide options for immediate fiscal adjustment to the government of Jordan and to set the foundations for longer term consolidation. To that effect, an analysis of the dynamics of revenues and expenditures over the years 2000-2011 is undertaken. Specifically, this report attempts to provide options to stop and reverse the declining trend in revenues observed since 2007. Indeed, domestic revenues declined by 9.4 percentage points of GDP between 2007 and 2011. This steady and structural decline in revenues increased the vulnerability of Jordan s public finances to any exogenous shock. Hence, the strong fiscal stress at the eve of the Arab Awakening, due to the pressures to finance widening power sector deficit following the disruption of Egyptian gas supply, and to meet popular demand for additional spending and subsidies. The report also examines: 1) potential sources of savings from current and capital spending, 2) scenarios to reduce power sector deficit including tariff simulations, 3) options to reduce consumer subsidies and target them more efficiently to the poor, and 4) options to reduce the financial deficit of the water sector. The report ranks the measures according to a rating mechanism that takes into account the magnitude of savings, the efficiency improvements in the use of public resources, the distributional impact, previous dynamic of the spending or revenue item in question, the poverty and social impact, and the growth impact. Finally, the report proposes a matrix of policy objectives and actions that identifies areas of policy reform, policy objectives, actions needed to reach this objective, and time horizon.en-USCC BY 3.0 IGOACCUMULATION OF ARREARSADMINISTRATIVE COSTSANNUAL COSTANNUAL RATEARREARSBANK BORROWINGSBENEFICIARIESBONDBORROWING REQUIREMENTBROKERAGEBUDGET BALANCEBUDGET CLASSIFICATIONBUDGET DEFICITBUDGET DEPARTMENTBUDGET EXPENDITUREBUDGET LAWBUDGETARY EXPENDITURESBUDGETINGCAPITAL ACCOUNTCAPITAL EXPENDITURECAPITAL EXPENDITURESCAPITAL GAINSCAPITAL MARKETCAPITAL MARKETSCAPITAL SPENDINGCASH TRANSFERSCENTRAL BANKCENTRAL GOVERNMENTCIVIL SERVANTSCIVIL SERVICECLASSIFICATION OF EXPENDITURESCOMMODITY PRICECOMPETITIVE BIDDINGCONSUMPTION GOODSCONTRACTUAL OBLIGATIONSCOST RECOVERYCURRENCYCYCLICAL FACTORSDEBT DYNAMICSDEBT SERVICEDEFICITSDEPOSITSDEVELOPING COUNTRIESDISBURSEMENTSDISTRIBUTIONAL IMPACTDOMESTIC DEMANDECONOMIC CLASSIFICATIONECONOMIC DOWNTURNECONOMIC GROWTHEFFICIENCY GAINSEFFICIENCY OF PUBLIC SPENDINGELECTRICITYEMERGING ECONOMIESEQUIPMENTEQUITY CONSIDERATIONSEXCHANGE RATEEXOGENOUS SHOCKSEXPENDITUREEXPENDITURE PERSPECTIVESEXPENDITURESEXTERNAL GRANTSFINANCE MINISTRYFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL POLICIESFINANCIAL RESOURCESFINANCIAL SUSTAINABILITYFISCAL ADJUSTMENTFISCAL ADJUSTMENTSFISCAL AFFAIRSFISCAL AUSTERITYFISCAL BURDENFISCAL CONSOLIDATIONFISCAL CONSTRAINTSFISCAL DEFICITFISCAL DEFICITSFISCAL IMPLICATIONSFISCAL POLICIESFISCAL POLICYFISCAL PRESSUREFISCAL REFORMFISCAL SAVINGSFISCAL SUSTAINABILITYFOREIGN DIRECT INVESTMENTFOREIGN GRANTSFOREIGN INFLOWSFOREIGN INVESTORSFOREIGN MARKETSGOVERNMENT BUDGETGOVERNMENT BUDGET DEFICITHEALTH INSURANCEHIGHER DEFICITSHOUSINGINCOME REDISTRIBUTIONINCOME TAXINFLATIONINFRASTRUCTURE PROJECTSINSTRUMENTINSURANCEINTEREST INCOMESINTEREST RATEINTEREST RATESINVESTINGINVESTMENT SPENDINGISLAMIC LAWLABOR MARKETLEVELS OF PUBLIC SPENDINGLOANMACROECONOMIC INSTABILITYMACROECONOMIC MANAGEMENTMARKET PRICESMEDIUM-TERM EXPENDITUREMEDIUM-TERM EXPENDITURE FRAMEWORKMEDIUM-TERM OBJECTIVESMILITARY EXPENDITURESMILITARY PERSONNELMILITARY SPENDINGMINISTRY OF FINANCEMOBILE PHONESMONETARY FUNDOIL PRICEOIL PRICESOUTSTANDING STOCKPAYMENT OBLIGATIONSPENSIONPENSION REFORMPENSION SYSTEMPENSIONSPERVERSE INCENTIVESPOLICY RESPONSEPOVERTY LEVELPOVERTY REDUCTIONPRICE INDEXPRIVATE FIRMSPRIVATE SECTORPRIVATE SECTOR GROWTHPROGRAMSPUBLICPUBLIC DEBTPUBLIC EMPLOYMENTPUBLIC EXPENDITUREPUBLIC FINANCESPUBLIC FUNDSPUBLIC HOSPITALSPUBLIC INVESTMENTPUBLIC PENSIONPUBLIC PENSIONSPUBLIC SCHOOLSPUBLIC SECTORPUBLIC SECTOR BORROWINGPUBLIC SECTOR CONSUMPTIONPUBLIC SECTOR DEFICITPUBLIC SECTOR DEFICITSPUBLIC SECTOR EMPLOYEESPUBLIC SECTOR EMPLOYMENTPUBLIC SECTOR LABORPUBLIC SECTOR PRODUCTIVITYPUBLIC SECTOR WAGESPUBLIC SECTORSPUBLIC SERVICEPUBLIC SERVICESPUBLIC SPENDINGREAL ESTATE TAXREAL GROWTHREAL INTERESTREAL INTEREST RATEREFORM OBJECTIVESREFORM PROGRAMREGISTRATION FEESRETURNRETURNSREVENUE INCREASESSALES TAXSALES TAXESSAVINGSSAVINGS OPTIONSSERVICE DELIVERYSERVICE EMPLOYMENTSETTLEMENTSMALL BUSINESSSOCIAL ASSISTANCESOCIAL PROGRAMSSOCIAL PROTECTIONSOCIAL SECURITYSOCIAL SECURITY SYSTEMSOVEREIGN GUARANTEESOVEREIGN GUARANTEESSTRUCTURAL REFORMSTAXTAX ADMINISTRATIONTAX BASETAX BURDENTAX CODETAX CREDITTAX CREDITSTAX CUTSTAX EXEMPTIONTAX EXEMPTIONSTAX EXPENDITURESTAX INCENTIVESTAX LAWTAX ON INTEREST INCOMETAX POLICIESTAX RATETAX RATESTAX REFORMTAX REVENUETAX REVENUESTAX SUBSIDIESTAX SYSTEMTAXATIONTAXPAYERSTELECOMMUNICATIONSTOTAL EXPENDITURESTOTAL SPENDINGTRANSPARENCYTURNOVERUNCERTAINTYVALUATIONSWAGE POLICYWELFARE LOSSWorld Bank10.1596/13251