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On June 5, one day after King Abdullah II had accepted the resignation of Prime Minister Hani al-Mulki, Omar al-Razzaz was designated as Jordan's new prime minister, and the Cabinet was formed by royal decree on June 15 .When Mulki came into office in mid-2016, Jordan was headed toward insolvency, with the debt-to-GDP ratio increasing at a pace of about 5 percent per year, reaching over 93 percent of GDP. Mulki successfully pulled Jordan out of the freefall, reducing the increase in the debt-to-GDP ratio to 1 percent per year by restraining spending growth while dramatically increasing revenues and cutting electricity subsidies. Meanwhile Jordan's already weak economy grew weaker. The proposed changes to the income tax law itself are hardly radical; Jordan is traditionally a lightly-taxed country, and the most recent amendment would have reduced the minimum income at which individuals can be taxed from 12,000 Jordanian dinars ($16,910) to 8,000 dinars per year, and for families from 24,000 Jordanian dinars per year to 16,000 dinars.According to the report, which covers through April, spending during the first four months of 2018 increased by 255 million dinars, while domestically generated revenues (i.e. not counting foreign aid) increased by only 24.3 million dinars.Assuming this pattern continues throughout the year, this would add roughly 700 million dinars to Jordan's debt, causing the debt-to-GDP ratio to increase by three percent instead of 1 percent.
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