The Impact of the General Budget Deficit on the Increase of Public Debt: A Case Study of Jordan for the Period 2006–2016

This study examined the effect of the public budget deficit on Jordan’s public debt during 2006–2016. It found a statistically significant effect of the budget deficit on the increase in public debt, due to revenues being unable to cover expenditures. It also found that external subsidies contributed to reducing the budget deficit and public debt. The study recommends reducing current expenditures and investing external subsidies in income-generating projects to diversify revenue sources.