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Public social expenditure underpins the well-being and economic potential of individuals and entire societies. The growing pressure arising from limited fiscal space and sustainability challenges has been increasing in the Arab region, including Jordan, emphasizing the need to invest in structural transformation, human development and the Sustainable Development Goals (SDGs). The goal is not merely to increase total public expenditure, however, but to improve its efficiency. If expenditures can be targeted to key social development priorities and vulnerable populations facing multiple deprivations, the impact on social and human development outcomes would be much greater. A proper tool to map public social expenditure in its entirety and assess its efficiency is needed in order to manage expenditure in a way that meets the aspirations of people and achieves the SDGs.

A comprehensive mechanism that monitors social expenditure, such as the social expenditure monitor (SEM), helps to ensure more efficient and effective budget allocations to achieve socioeconomic priorities and the SDGs. Using SEM, this policy paper analyses the major trends and patterns of social expenditure allocations in the public budgets of Jordan and assesses their efficiency. The paper draws important policy conclusions, such as improving monitoring and governance of social programmes for a more equitable, efficient and effective social policy; enhancing fiscal space for increasing social expenditures in critical areas of social policy such as quality education and health services, early childhood development, labour market, research and development and climate actions; reprioritizing allocations to critical social policy areas with balanced mix of expenditures towards improving human development, human capital and economic growth; and modernizing the public transfer system in order to ensure transparency, efficient and quality service delivery and better target vulnerable populations.