Jordan—Public Financial Management and Administration (PFMA)

Jordan’s economy has faced numerous challenges, from waves of refugees to regional instability. The Government of Jordan has been proactive, introducing new tax legislation, improving tax administration, upgrading the budgeting process, and streamlining public expenditures management. However, more work is needed to ensure macro-fiscal resilience while maintaining the fiscal space necessary to deliver social goods to citizens. To support the government in this critical endeavor, the U.S. Agency for International Development (USAID) designed the Public Financial Management and Administration (PFMA) activity. PFMA works to enhance Jordan’s revenue system and improve budget management processes.

PFMA strengthens the capacity of the Jordanian Ministry of Finance (MOF) and other government institutions to modernize revenue collection, encourage compliance, upgrade public procurement management, and improve budget planning, preparation, and execution.

Our work is integrated into local systems and informed by political economy analysis of Jordan’s PFM ecosystem. Central to our approach is change management—structured tools that help government officials transition from the status quo to new ways of operating.

Sample Activities

• Build capacity within the Studies and Economic Policies Directorate to enhance the use of their revenue impact model for informing adaptations and fiscal responses to the COVID-19 crisis, while also advancing overall economic policy analysis capabilities.
• Streamline the budget management process to improve efficiency and effectiveness in budget planning and execution.
• Undertake select tax studies aimed at broadening the tax base and evaluating the impact of revenue mobilization strategies.
• Develop and implement an electronic revenue management system to modernize and optimize revenue collection and administration.
• Strengthen the preparation of results-oriented budgets to ensure budgets are focused on achieving measurable outcomes and delivering tangible results.
• Enhance audit processes and procedures to improve accuracy, transparency, and compliance in auditing practices.
• Collaborate with Jordanian Border Control Agencies to create and execute a coordinated border management plan that integrates trade requirements with Jordan Customs.

Select Results

• Developed new, user-friendly tools, including a series of tailored dashboards to visualize budgetary information and data mining tools to assist the search for information. These tools allow stakeholders, depending on their authority, to access the needed information in a timely way.
• Assisted the Government of Jordan in launching the Government Unit Portal, which makes reporting easier and more efficient for 25 government units. This system improves decision-making and resource allocation by providing a clearer picture of the budgetary situation.
• Assisted the Government Tenders Department to increase utilization of the Jordanian Online E-Procurement System (JONEPS) from 47 to 88 percent, releasing 305 public works and technical services tenders through the system, as well as increasing efficiency, accountability, and transparency.
• Supported the Jordanian Income and Sales Tax Department to implement a national media campaign to promote invoice requesting by taxpayers. The campaign explains how to use the Fawateery app to submit invoices and reached 9.7 million people via press coverage, generating 90,000 downloads.
• Supported the General Budget Department to launch a system that supports results-oriented budgeting and monitors public expenditures against performance, enhancing government activity efficiency and accountability.
• Moved Jordan’s digital debt analysis system from a manual to a digital interface, improving reporting timeliness and accuracy, which enhances Jordan’s credit ratings and helps decrease the country’s cost of borrowing.
• With the German Jordanian University and the Income and Sales Tax Department, launched a top-tier higher diploma to train future tax professionals. This one-year program involves national and international experts in taxation, accounting, public finance, and law.