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    18-Oct-2026

Ministries save JD94 million in operational spending over nine months — report

 

The Jordan Times

 

AMMAN — Ministries reduced operational expenditure by JD94 million during the first nine months of 2026, achieving savings of 21.5 per cent against allocations for the period, according to a Ministry of Finance report.
 
Operational spending reached JD343.2 million out of JD437.1 million allocated for the January-September period, compared with a full-year allocation of JD582.8 million, according to the report, cited by the Jordan News Agency, Petra.
 
The report attributed the savings to cost-containment measures and streamlined administrative procedures, which reduced expenditure on stationery, electricity, rent, telecommunications, insurance, maintenance and other operational items.
 
Savings across the categories ranged from 7 per cent to 45.2 per cent, with the largest percentage reduction recorded in stationery, printed materials and office supplies, reflecting the expansion of digital government services.
 
Spending on these items totalled JD16.1 million, compared with JD29.4 million allocated for the nine-month period, generating savings of JD13.3 million, or 45.2 per cent. The full-year allocation for the category stands at JD39.2 million.
 
Electricity recorded the second-largest percentage reduction, at 28.9 per cent, generating savings of JD10.5 million. Spending reached JD25.8 million against a nine-month allocation of JD36.3 million, compared with a full-year budget of JD48.4 million.
 
The report linked the reduction in electricity costs to the expansion of renewable energy and the use of smart street lighting.
 
Building operating costs fell by 27.8 per cent, saving JD500,000. Expenditure totalled JD1.3 million out of JD1.8 million allocated for the period, while the full-year allocation stood at JD2.4 million.
 
Rent expenditure declined by 21.9 per cent, generating savings of JD3.5 million, mainly following the relinquishment of rented school buildings. Spending reached JD12.3 million against a nine-month allocation of JD15.8 million, compared with an annual allocation of JD21 million.
 
Service expenditure fell by 21.8 per cent, generating savings of JD34.7 million. Spending totalled JD124.5 million out of JD159.2 million allocated for the first nine months, while the full-year allocation stood at JD212.2 million.
 
Telecommunications expenditure declined by 20.5 per cent, with spending reaching JD3.1 million against a nine-month allocation of JD3.9 million. The full-year budget for the category is JD5.2 million.
 
Materials expenditure fell by 19.9 per cent, generating savings of JD26.7 million. Spending reached JD107.7 million out of JD134.4 million allocated for the period, compared with an annual allocation of JD179.2 million.
 
Insurance expenditure declined by 17.7 per cent, saving JD600,000, with spending totalling JD2.9 million against an allocation of JD3.5 million for the period. The full-year allocation stands at JD4.7 million.
 
Maintenance expenditure on machinery, furniture and supplies fell by 17.6 per cent, generating savings of JD1.5 million.
 
Spending reached JD6.8 million out of JD8.3 million allocated for the nine-month period, compared with an annual allocation of JD11 million.
 
Expenditure on vehicle and machinery use recorded the smallest reduction among the listed categories, falling by 7.7 per cent. Spending totalled JD3.6 million against a nine-month allocation of JD3.9 million, while the full-year allocation stood at JD5.2 million.
 
The report follows directives issued earlier this year by Prime Minister Jafar Hassan, who instructed ministries, government departments and public institutions to rationalise consumption and tighten spending controls.
 
Hassan also instructed the minister of finance to prepare an action plan to reduce operational expenditure across ministries, public institutions and independent bodies by 15 per cent next year.
 
In a related measure, the Greater Amman Municipality (GAM) is implementing its 2026 Smart Lighting Project to replace conventional lighting units with smart LED lights on main roads, in tunnels and on bridges, Petra said.
 
The project aims to replace 32,500 conventional units, with 24,025 installations completed by the end of September.
 
The municipality expects the project to reduce energy consumption by up to 50 per cent through an electronic control system that adjusts lighting according to real-time requirements and reduces routine maintenance needs.
 
Separately, the planned merger of the Civil and Military Consumer Corporations aims to streamline logistics, supply chains and procurement, improve resource efficiency and strengthen financial sustainability.
 
The integration is also intended to expand joint procurement, improve storage and transport efficiency, reassess branch distribution and secure better prices and quality standards while reducing operating costs.
 
In the healthcare sector, the Electronic Pharmaceutical Inventory Management System generated savings of approximately JD3.099 million between April and October 21, 2025, by controlling disbursement, regulating prescriptions and tracking medicines from central warehouses to hospitals and healthcare centres.
 

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