Macroeconomic performance and the budget deficit in Jordan: A trigger point for change in the aftermath of COVID-19

No one doubts that COVID-19 will widen the budget deficit in most, if not all, developing countries. This development (widening public deficit) is particularly important for countries like Jordan. Indeed, since 1965, all governments have witnessed a their budgets. Within this context, primary purpose of paper to examine impact real gross domestic product (GDP) on fiscal Jordanian economy. To GDP government, we use annual data covers period 1992–2019 and some relevant econometric techniques (stationarity test, co-integration, vector error correction model (VECM), variance analysis) realize objective paper. The documented evidence indicates underlying long-run relationship between stable. In addition, results indicate takes increasing weight explaining variability over time. Considering fact affects (positively) deficit, government should implications budget, as “trigger” point change. re-examine its spending where possible, seek savings, greater efficiency levels. must also current tax law, make necessary changes system generate only more revenues but diversified well.