Expansionary Jordanian budget will contain discontent

Significance

That comes as the country’s own parliament prepares to vote on the 2020 fiscal bill before the end of the year. Amman is currently in the last year of a 723-million-dollar IMF credit line, which required it to cut debt levels. The budget is intended to stimulate growth and stave off further protests, while simultaneously persuading the IMF to extend its credit line for another three years during upcoming talks in January.

Impacts

• There will be closer cooperation between the government and parliament over managing the economy.
• Signs of unrest and public discontent over economic reforms will ease, notably if a tax evasion crackdown features on social media.
• Razzaz will survive another year as prime minister, having already served 18 months, sending a positive signal to the IMF and investors.
• King Abdullah and Queen Rania will come under less public scrutiny and distance themselves further from day-to-day politics.