The draft law estimated total public expenditures at 12.5 billion Jordanian dinars (about $17.62 billion), representing an increase of 16.5 per cent compared to the re-estimated level for 2024, the report said on Thursday, noting the increase aims to cover funding for major projects, including the construction of new hospitals and schools, and the maintenance of old ones.

This increase aims to fund major projects, build new hospitals and schools, and maintain existing ones, the government said in a statement.

The draft law was endorsed during a Cabinet session chaired by Prime Minister Jafar Hassan on Thursday, Xinhua news agency reported.

The draft law also expects a decrease in primary deficit for 2025 to two per cent of the GDP, compared to 2.9 per cent in 2024.

The draft budget estimated public revenues at 10.233 billion dinars, of which 9.498 billion dinars are local revenues and 734 million dinars are foreign grants.

The draft budget is based on the expectation that the national economy will grow by about 2.5 per cent in 2025 while maintaining moderate inflation rates.

The government statement said that the 2024 state budget law "adopts realistic revenue estimates to enhance the management of development processes".

"The draft also shows an improvement in the coverage of current expenditures by domestic revenues, increasing to 86 per cent compared to 81.6 per cent in the 2024 figures."

The share of foreign grants in total domestic revenues has gradually declined since 2004 due to Jordan's self-reliance efforts.

Between 2004 and 2008, foreign grants accounted for nearly 17.22 per cent, dropping to 13.15 per cent between 2009 and 2013, and further to 11.18 per cent between 2019 and 2022.

The draft budget is based on projections of real economic growth of 2.5 per cent and nominal growth of 4.9 per cent, while maintaining moderate inflation rates, which will contribute to enhancing financial and monetary stability.