Jordan—Public Financial Management and Administration (PFMA)

Jordan’s economy has experienced a series of shocks—from waves of refugees to regional instability and now COVID-19. While the Government of Jordan has introduced new tax legislation and sought to improve tax administration, upgrade the budgeting process, and streamline public expenditures management, there is still much work to be done to ensure macro-fiscal resilience while maintaining the fiscal space to deliver social goods to citizens. To support the government with this fiscal imperative, the U.S. Agency for International Development designed the Public Financial Management and Administration (PFMA) activity. PFMA is a five-year initiative to improve the Jordanian revenue system and enhance the budget management process.

PFMA will build the capacity of the Jordanian Ministry of Finance and other government institutions to modernize the revenue collection system, encourage compliance—including making it easier for taxpayers to comply with tax obligations—upgrade public procurement management, and improve budget planning, preparation, and execution.

Our approach is to work with and through local systems while thinking and working politically. Our assistance will be informed by an analysis of the political economy of the PFM ecosystem in Jordan. Central to our implementation methodology is the concept of change management—structured tools to assist government officials to make the personal and institutional transition from the status quo to new ways of doing business.

Sample Activities

• Build capacity within the Studies and Economic Policies Directorate to better utilize their revenue impact model to inform adaptations and fiscal responses to the COVID-19 crisis and deepen economic policy analysis capabilities overall.
• Streamline the budget management process.
• Undertake select tax studies focused on tax base broadening and revenue mobilization impact.
• Develop and implement an electronic revenue management system.
• Strengthen the preparation of results-oriented budgets.
• Strengthen audit processes and procedures.