Saudi Arabia sends $50 million to Jordan for budget as economy falters
The Jordanian government is working to close tax loopholes and increase its revenue collection amid its economic struggle.
Saudi Arabia sent $50 million to Jordan today to help the fellow monarchy fund its budget, the official Saudi Press Agency reported.
The money is the fourth installment out of five that Saudi Arabia agreed to send as economic aid to Jordan back in 2018. At the Makkah Summit that year, Saudi Arabia, the United Arab Emirates and Kuwait each agreed to send $50 million annually to Jordan, ultimately totaling $2.5 billion by 2023, according to the agency.
Jordan’s budget for 2022 is estimated to be around $15 billion, according to The Jordan Times.
Why it matters: The Jordanian government is working to close tax loopholes and expand its tax base without raising taxes. This effort is part of Jordan’s adherence to structural reforms recommended by the International Monetary Fund, Finance Minister Mohamad al-Ississ said this week.
