Through "Al-Anbat," Al-Anani Criticizes the Tenets on which the Budget Is Based.. Wishing that the Government Would Take Political Reform Seriously
Translated by: MAYS ALSHAWABKEH
The government's general budget forecasts for 2023, according to former deputy prime minister Jawad Al-Anani, are based on three sources of direct taxes, the most significant of which is income tax. Government earnings are not measurable. Despite the fact that this can be priced, indirect customs taxes, as well as arbitrary fees and fines, b y speculating on the extent of the anticipated economic growth in 2023 the government's income and revenue will rise if it is more than the current year. When it is measured, the government will be able to determine if it will boost GDP more or less.
The average inflation rate in the Kingdom is expected to be around 3%, according to the government's forecast. With less inflation, government fees are lower and are taken as a percentage of sales tax, despite Anani's observation that this prediction is incorrect and that the nearest ratio is 3.8%. The government may profit from inflation by earning more money. The Kingdom's exports and imports are significant, with many imports operating under many customs (Customs), describing how the government calculates its income by factoring in all of the aforementioned factors.
He emphasized that while revenue statistics are projected based on specific facts, the government often improves by setting more precise expenditure than revenue figures. He estimated that the government has budgeted at 3% inflation while the IMF estimated that inflation will be at 3.8%.
The vision of economic modernization was put into action for the first time in 2023 at a cost of 41 billion dinars, with the government paying 25% of the total and the remaining funds coming from the private sector and investments in the Kingdom.
Anani stressed that the lack of suitable allocations would not help to accomplish the necessary economic transformation and questioned the basis for the budget's work as well as whether sufficient funds had been allotted to it to implement the three-year operating talk 2023-2026.
What is the new investment law's incentive for luring investments and providing them with the right exemptions, through which the government hopes to raise $4 billion annually, has it been successful, and how will it impact the government's income and outlays?
As part of the three reform initiatives known as His Majesty King Abdullah II, which include political, economic, and administrative change, I hope the responses to the questions in the 2023 general budget letter will reveal whether the government is serious about economic reform.
He emphasized that the administrative changes the administration had made, such as the creation of committees and the appointment of a deputy prime minister in charge of the government's structure, would have an impact on the budget's revenues and expenditures.
The greatest grant in the United States, budgetary aid, was the only award, he pointed out, that would require a $845 million piece of the budget to cover a portion of the general deficit that it was required to pay.