Establishment and Development of the General Budget Department

12/09/2024
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  • In 1960, prior to the issuance of Budget Organic Law No. (39) of 1962, as amended, a Royal Commission was established to consider the applicable financial laws and regulations, in particular those relating to the general budget and related accounts. The Committee examined the methodology for the preparation of the general budget and its classification methods and identified its main weaknesses, whereas the responsibility for the preparation of Jordan's general budget was the function of the Ministry of Finance through the General Budget Section, which was directly linked to the Under-Secretary of the Ministry of Finance.
  • In 1962, a committee was formed up to draw the draft Budget Organic Law No. (39) of 1962. The Law entered into force on 16/10/1962, and under which the General Budget Department (GBD) was established to be managed by a Director General reporting to the Minister of Finance.
  • As of the fiscal year 1963/1964, the General Budget Department has been preparing the general budget law, and continued to introduce improvements to General Budget preparation and expenditure and revenue classification methods.
  • In 2006, the Administrative Regulation Bylaw of GBD No. (56) for the Year 2006 was issued to identify the organizational structure of the Department and determine the relationship and communication methods between senior management and managers of the Department.
  • In 2008, the infrastructure has been completed to expand the implementation of the results-oriented budget to all ministries, departments and government units. The general budget has thus entered a new phase of development and modernization. The medium-term financial framework, the medium-term expenditure framework and the COA have been adopted. The Budget Organic Law No. (58) of 2008 has been approved.
  • In 2014, instructions for organizing and managing the General Budget Department No. (1) of 2014 were issued, and accordingly the organizational structure of the department was modified to comply with the tasks of the directorates and organizational units set out in the instructions referred to above.
  • In April of 2015, the Prime Minister's circular was issued containing preliminary partial ceilings for each ministry and government department for the purpose of preparing its draft budget for 2016, with a view to reducing the gap between the final ceilings to be provided to ministries, departments and government units and their requests.
  • In 2015, the Department worked to consolidate and institutionalize the concept of gender-responsive budgeting through the budget circular No. (17) of 2015 to prepare the draft general budget law, the draft government units’ budgets law and the manpower bylaw of government ministries, departments and units for the fiscal year 2016. The Department also issued a "Guide to applying gender-responsive budgeting within the framework of public spending of the government budget in Jordan."
  • In 2015, Jordan earned (55) points in the Open Budget Survey conducted by Open Budget Partnership Organization in Washington, D.C., which is (10) points above the world average, thus achieving the 33rd ranking globally and the first ranking on the Arab level and across the Middle East and North Africa as a result of efforts made in the Department to deepen the application of modern concepts in the field of budget management in terms of preparation and implementation.
  • In 2017, the decentralization approach was initiated through the preparation of capital budgets for the governorates and their inclusion in the general budget for 2018, with a view to expanding the participation of local communities in identifying the developmental needs and priorities of the governorates and helping to distribute the benefits of development to the Kingdom's governorates.
  • In 2021, the Highness Royal Decree was issued to approve “the Budget Organic Law and the Government Units' Budgets No. (13) For the year 2021” to organize the management of public funds in the Kingdom and to determine the responsibilities and roles of the official bodies in this process and to lay the foundations for the preparation, implementation and oversight of the General Budget Law and the Government Units' Budgets Law, taking into account the macroeconomic framework of the national economy, enhanced financial stability and efficient delivery of government services in all governorates, and to take into account the international best practices in the transparency of the General Budget and the comprehensive legal coverage of all stages of the preparation, implementation and oversight of the General Budget and the government Units’ Budgets and expanding the dissemination of financial statements and reports to reach all public institutions. Work is under way to amend the law in line with the amendment to article (112) of the Jordanian Constitution.
  • In 2022, the documents for preparation of the General Budget Law for the fiscal year 2023 were amended in response to constitutional amendments (Article 112/1), as well as to keep pace with contemporary concepts in the preparation and implementation of the budget, and in line with the developments and changes imposed by internal and external conditions with regard to economic priorities, gender responses and climate changes, which will have a positive impact on citizens' lives.
  • Amending Law of Budget Organic Law and Government Units' Budgets No. (2) For the Year 2023.was issued and read with Law No.(13) of 2021, to take into account the constitutional amendments contained in the repeal of the Law on Government Budgets and their incorporation into the General Budget Law.
  • In 2022, Jordan earned (61) points out of one hundred in the budget transparency criterion in the Open Budget Index for 2021 and remained the top leader in the Middle East and North Africa. It was ranked (32) out of (120) participating countries, surpassing the world average of (45) points out of one hundred.

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