JORDAN FY 2008 FISCAL TRANSPARENCY REPORT

UNCLAS AMMAN 000602 SIPDIS SENSITIVE SIPDIS EEB/IFD/OMA FOR SNOW AND FIGUEROA NEA/RA FOR PALLARES AND SCOVITCH NEA/ELA FOR RANA AND ROBERTS STATE PASS USAID E.O. 12958: N/A TAGS: EAID ECON PREL JO SUBJECT: JORDAN FY 2008 FISCAL TRANSPARENCY REPORT REF: STATE 16737 ¶1. (U) As requested reftel, Embassy Amman's submission for the FY 2008 congressionally-mandated report on fiscal transparency follows. ¶2. (SBU) Begin text: The Government of Jordan (GOJ) is firmly committed to fiscal transparency and accountability, and continues to institute new controls and procedures as part of its economic reform program. The Budget Department, led by a Director General who reports to the Finance Minister, has responsibility for preparing the annual budget in consultation with relevant ministries and governmental agencies. The budget, which includes all revenues and expenditures, is posted on the website of the Budget Department (www.gbd.gov.jo),and when approved, published in the Official Gazette. The GOJ also distributes copies of the budget to donors and foreign embassies. Supporting the efforts of the Budget Department is the Audit Bureau which, along with developing audit standards and guidelines, has instituted computerized financial and auditing systems and adopted a strategic training plan to maintain staff competence and awareness of auditing and accounting issues and innovations. The Economic Consultative Council and the Public Reform Task Force also monitor transparency and public sector financial management. The Department of Statistics coordinates the collection and communication of fiscal data between ministries and other government agencies and is responsible for ensuring accuracy. Jordan's 2008 budget process was marked by greater transparency, accountability, and coordination than in previous years. With assistance from the three-year USAID Fiscal Reform Project, Jordan moved to a modern budget framework in alignment with international best practices, as identified by the World Bank and IMF, by implementing three new programs: -- Results Orientated Budgeting (ROB): to highlight the linkages between the National Agenda and strategic priorities, and how public expenditures affect Jordan's ability to achieve priority development and social goals. -- Medium Term Expenditure Framework: to better allocate available resources into Ministry expenditure ceilings for 2008 and the two forward years. -- New Chart of Accounts: to institute internationally accepted standards for structuring government accounts in order to provide comprehensive analytical information for fiscal management. Additionally, due to the unpopularity of some fiscally- responsible budget decisions, the GOJ made a concerted effort to inform and educate the public about prevailing economic conditions and the need for reform. EU and World Bank programs also supplement USAID activities to promote fiscal reform, fiscal policy, transparency, and good governance. Considerable progress has been made, but further work in capacity-building is still needed. Visit Amman's Classified Website at http://www.state.sgov.gov/p/nea/amman HALE