AMMAN, Oct 24 (Reuters) - Jordan's budget deficit rose to 876 million dinars ($1.23 bln) in the first nine months of 2009, more than double the figure for the same period of last year, finance ministry statistics released on Saturday showed.
The latest preliminary figures included only 103 million dinars of grants from donor countries, which are traditionally used to cover some budget shortfalls but have fallen substantially this year due to the global financial crisis.
Jordan's public finances are under strain as the global economic downturn hurts domestic demand and foreign cash flows, including remittances from expatriates in the Gulf.
Prime Minister Nader Dahabi this week said the 2009 deficit should remain within a forecast 1.1 billion dinars ($1.6 bln) or 7 percent of gross domestic product (GDP), while economic growth slows by almost half to between 3 to 4 percent.
The latest deficit figures compare with a 349.2 million dinar budget deficit in the first nine months of last year.
The aid-dependent kingdom has close business and economic ties to Gulf Arab governments, who have been hard hit by a drop of oil prices -- their main source of state revenue. The global downturn has also hit key earners such as tourism and exports.
(Writing by Suleiman al-Khalidi; Editing by Patrick Graham)
($1 = 0.709 dinar) Keywords: FINANCIAL JORDAN/BUDGET (suleiman.al-khalidi@thomsonreuters.com,Reuters Messager: suleiman.al-khalidi.reuters.com@reuters.net; +96 279 5521407) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The latest preliminary figures included only 103 million dinars of grants from donor countries, which are traditionally used to cover some budget shortfalls but have fallen substantially this year due to the global financial crisis.
Jordan's public finances are under strain as the global economic downturn hurts domestic demand and foreign cash flows, including remittances from expatriates in the Gulf.
Prime Minister Nader Dahabi this week said the 2009 deficit should remain within a forecast 1.1 billion dinars ($1.6 bln) or 7 percent of gross domestic product (GDP), while economic growth slows by almost half to between 3 to 4 percent.
The latest deficit figures compare with a 349.2 million dinar budget deficit in the first nine months of last year.
The aid-dependent kingdom has close business and economic ties to Gulf Arab governments, who have been hard hit by a drop of oil prices -- their main source of state revenue. The global downturn has also hit key earners such as tourism and exports.
(Writing by Suleiman al-Khalidi; Editing by Patrick Graham)
($1 = 0.709 dinar) Keywords: FINANCIAL JORDAN/BUDGET (suleiman.al-khalidi@thomsonreuters.com,Reuters Messager: suleiman.al-khalidi.reuters.com@reuters.net; +96 279 5521407) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.