Fiscal decentralization in Jordan

Jameel Aljaloudi

doi:10.22495/jgrv9i4art3

Abstract

This paper aims to measure the degree of fiscal decentralization in Jordan by estimating the indicators used by the World Bank and the International Monetary Fund. These are the share of local units in public revenues, the share of public spending, and the share of compensation for workers in local units from the total compensation of workers in the public sector. The study uses set of data about public revenues and expenditures of the central government, independent government units, as well as the municipalities’ budgets figures. These data are for the period 2016-2018 and published electronically by the Ministry of Finance and the Ministry of Local Administration in Jordan. The study revealed progress in the field of political and administrative decentralization represented in the establishment of elected councils at the national, regional, and municipal levels and the transfer of a number of powers from central authorities to regional or local bodies. The issuance of a new decentralization law and the amendment of the Municipalities Law in 2015. The results showed that the degree of fiscal decentralization is very low in Jordan, especially when compared to other countries that had implemented decentralization reforms.

Highlights

Jordan, like other countries in the world, began to adopt the decentralization approach in managing state affairs
This paper aims to measure the degree of fiscal decentralization in Jordan by estimating the indicators used by the World Bank and the International Monetary Fund
If these ratios have decreased over time, this means a decrease in the degree of financial decentralization

Summary

Introduction

Like other countries in the world, began to adopt the decentralization approach in managing state affairs. This approach was represented in the supreme political desire of the king and a directive for governments to develop a model that fits the nature of the political and administrative system in the centralized state. For example, the democratization process, which was represented by the direct election of councils in the regions and in the municipalities and in ensuring women’s representation in them. Among the most important of these tasks, for example, is the task of planning and development in regional and local bodies. The Decentralization Law was issued in 2015 and amended the Municipalities Law in the same year to institutionalize basic and administrative decentralization

Objectives

Methods

Results

Conclusion