Jordan: Restructuring Public Expenditures and Protecting the Poor


Ehtisham Ahmad

Publication Date:

August 1, 1991

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate


In Jordan, a system of general food subsidies became untenable in budgetary terms, with a sharp devaluation of the dinar in the late 1980s. A shift from a general subsidy system to limited rations would greatly reduce budgetary costs and minimize adverse effects on the poor. To reduce subsidies, the authorities had taken measures, during the course of 1990, consistent with the measures suggested. To complete the safety net, a system of self-targeting public works is suggested; a reform of the social security system might also be needed in view of the increased unemployment resulting from the recent Middle East crisis.


Working Paper No. 1991/082



Publication Date:

August 1, 1991



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