The Phenix Center for Economic and Informatics Studies in Jordan, confirmed in a study issued on the occasion of the May Day, that the current economic and social rates clearly indicate the continued difficult economic conditions. In fact, the economic growth rate of 2018 reached 1.9%, and the deficit rate in the general budget, before the grants and aid remained high at the end of 2018. Moreover, the public debt rose to JD 28.6 billion, reaching 96% of GDP, which is a very big and dangerous rate.
The study attributed the reasons for the continuation of these difficult economic conditions to the implementation of a set of selective economic policies including price liberalization, which led to a significant rise in the prices of goods and services, as well as the implementation of unfair tax policies. In fact, the indirect taxes increased, where the most important of which was the general sales tax that reached 16% of the majority of the goods, the imposition of taxes with high prices on many commodities such as oil derivatives and telecommunications, in addition to the decrease in the general tax rates on sales of goods and services depending on their degree of importance for the majority of citizens, while the income tax revenues do not exceed 4% of GDP due to the poor collection methods and tax evasion, as well as they are set on non-escalating bases.
In total, tax revenues from indirect taxes amounted to nearly 75% of the total tax revenues, which is a major imbalance in the fiscal policies that has led to the deepening of social inequality and the expansion of poverty.
#Jordan #rise #public_debt
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