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The financial inclusion index reveals the fragility of the Jordanian economy and the lies of government figures

Amman Today

publish date 2022-08-26 16:17:42

The economic expert, Muhammad Al-Bashir, told Al-Bawsala: The unfair tax system is one of the most important causes of the problem of the economy and the suffering of Jordanians.

Economist Munir Diya to Al Bawsala: 5% of Jordanians owning most deposits in banks is an unhealthy indicator of a state governed by law

Amman – Raed Sobeih

Economists confirmed in statements to “AcompassThe report issued by the World Bank on financial inclusion and the figures it showed about Jordanians reveal “the fragility of the Jordanian economy on the one hand; In addition, it shows the extent of misinformation alleged by the Jordanian government figures about poverty and unemployment.

They stressed that economic prescriptions, especially tax ones, reinforce and widen the huge gap between the poor and the rich, which in their view is an “unhealthy indicator” in a country governed by institutions and the law, while wealth is accumulated in the hands of 5% of the community and more than 50% do not have Bank accounts due to their low incomes and their inability to have sufficient funds to open such accounts.

The fragility of the economy and the lies of government figures

The economic expert, Muhammad Al-Bashir, said in his statements to “Thecompass“The World Bank report clearly reflects the low income of Jordanian citizens, which is not accepted by the banks that raised the slogan of financial inclusion adopted by the Central Bank in response to a global wave in an attempt to know and control depositors in general and those who have income.”

He pointed out that “the circular made by the Central Bank some time ago, in addition to government ministries and many companies that adopted this issue and obligated the various parties to transfer salaries to banks and thus pay people to bank accounts, collided with the fact, as mentioned in the World Bank report, that there are many unemployed people. The poor, and also many of those with modest incomes, especially those who work in day labor and temporary work.”

Muhammad Al-Bashir: The gap in the income of poor and rich Jordanians is behind an unfair and ineffective tax system

He pointed out that “as a result, this confirms the fragility of the economic situation and the work environment that Jordanians suffer from, and it confirms once again that the numbers that the government is talking about are inaccurate numbers with regard to unemployment in particular.”

Al-Bashir added: In addition, as we know, the Jordanian family occupies a leading position in the number of its members, and if the placement occurs based on the number of the population, there is no doubt that a large number of these people do not have bank accounts, and this is a normal thing.

What is the reason for the huge gap between the rich and the poor?

Al-Bashir answers this question by saying: This is again a reflection of the tax system that is unfair and ineffective, in the sense that the absurdity that took place historically and beat the sales tax over the income tax, led to an income gap between people and institutions alike, and thus there are few who pay For the treasury and the greater number of people do not pay out of their large profits and these large differences appear in the form of large bank deposits in addition to immovable property.

The economist said: In this sense, I can explain this reason, and as I said, the fragility of the economic situation and the income gap between people due to the clear absence of income tax, which means that one of its roles could be reducing the gap between Jordanians’ incomes, which reflects itself in the form of Jordanians’ ability to savings.

He pointed out that if the sales tax had been less severe, our economy would have been more revitalized and unemployment would have been lower, and thus people would have had better employment and income.

Al-Bashir concluded, “In this sense, I can explain that the tax system is one of the main reasons for this situation in which we are living.”

Why don’t the majority of Jordanians have bank accounts?

In turn, the economic expert, Mounir, presented a blood money in his statements to “compass“His reading of the figures of the World Bank and what they give a clear picture of the financial conditions of citizens, pointing out that the majority today do not have money to deposit in banks. mobile.

Munir Diya: 5% of Jordanians’ acquisition of deposits estimated at more than 50 billion dinars is an unhealthy indicator in a country governed by law

He stressed that “the economic and living reality of the citizen has not improved for years, and the matter has become more difficult with the advent of the Corona pandemic and the repercussions of crises and wars in the world, which was reflected in the high rates of poverty, unemployment and inflation. Through opening projects, attracting investments, increasing salaries, reducing poverty and unemployment rates, but things are getting more difficult day by day,” he said.

Diya concluded a difficult paradox that reflects an aggravating satisfactory condition of the Jordanian economy, especially since “in contrast, the assets of local banks exceeded 50 billion dinars, and only 5% of depositors acquired most of the money deposited in banks, and this is an unhealthy indicator in a democratic state governed by institutions and the law.”

Financial Inclusion

Last month, the bank published data for countries around the world, including Jordan, related to the global financial inclusion index, which dates back to 2021, and revealed that 47% of adults in Jordan have bank accounts, and 37% of poor adults have an account, compared to 33% in 2017.

The World Bank report on the indicator stated that 36% of the 47% have accounts with banks and financial institutions only, 7% have accounts with financial institutions and a mobile service provider, and 4% have an account through a mobile service provider.

The World Bank report on the Global Index of Financial Inclusion shows that 53% of Jordanians do not have a bank account, and the report shows that 87% of these do not have enough money to open a bank account.

It is noteworthy that financial inclusion is the involvement of individuals in the banking system’s operations through the digital work system, which is an indicator of the development of the state and the extent of economic progress and reflects the reality of citizens’ lives.

According to the economic expert, Munir Dayah, and compared to the last report issued in 2017, there is an increase in the number of those who opened bank accounts, and the reason for this is due to the aid and monetary support provided by the state during the Corona pandemic, which prompted citizens to open accounts in banks or other financial institutions to receive cash support. .

(compass)

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Jordan News

Source : اخبار الاردن

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