Standing at the same amount as the budget deficit, Jordan’s bankrupt public pension system is funded solely by new debt. Rationally reducing its burden is of prime importance.
At the parliamentary discussions of the Government budget earlier this year, multiple speeches talked about the “inelasticity” of the Government’s current expenses. The rationale went thus: 85% of the total central government budget is made of current expenses of which the vast majority is salaries and pension costs. These cannot be reduced.