Fiscal Reform Project II (FRP II)

By 2009, years of organic and poorly planned growth in the Kingdom of Jordan had produced a large and unwieldy government bureaucracy accounting for 13 percent of the national workforce. Institutions had confusing and overlapping mandates. Public spending was rising on services that did not necessarily fall under the mandate of the public sector. At the same time, citizens struggled to find the appropriate government agencies to address their everyday needs.

Working with a host of government institutions—among others, the Ministry of Finance, General Budget Department, line ministries, tax and customs administrations, and the prime minister’s office—FRP II applies a “whole-of-government” approach to foster innovative, responsive, and efficient government, whether through better provision of health care services, better targeted cash assistance to poor people, or simply smarter spending. Collectively, these improvements enhance government effectiveness, improve the business environment, and create the conditions necessary to attract new investments, create jobs, spur economic growth, and improve Jordanians’ standard of living.

Sample Activities

  • Train government staff, with a strong emphasis on women employees, to more efficiently and effectively carry out their core functions, on topics ranging from audit techniques and use of a medium-term debt strategy tool to customs valuation.
  • Improve compliance and collections functions of the Income and Sales Tax Department, thereby identifying as many as 65,000 previously unregistered individuals who have now been assigned taxpayer identification numbers.
  • Develop a performance audit function in the Audit Bureau to hold departments responsible for achieving targets, raising performance, and improving effectiveness.
  • Assist the government to achieve sustained savings in budget resources by improving public investment efficiency, specifically by contributing to feasibility studies and cost-benefit analyses for capital and mega projects.

Select Results

  • Rolled out the government-wide financial management system to six pilot agencies, covering nearly half of the country’s budget—a watershed step toward more transparent, consistent, and real-time budget preparation and execution processes across all spending agencies.
  • Built a macroeconometric model capable of forecasting Jordan’s economy and exploring the consequences of policy scenarios or external shocks to the economy—an essential tool for future policy papers and the Ministry of Finance’s medium-term fiscal framework.
  • Supported opening of an additional Single Window border center, for a total of eight Single Windows around the country, covering 80 percent of all imports and integrating the border operations of five government agencies.
  • Submitted recommendations to the Council of Ministers, which approved the merger, elimination, or restructuring of 22 autonomous public institutions—a significant step toward more efficient and results-oriented government.

Client: U.S. Agency for International Development
Contract: 2009–2015