Amman will receive $360m a year in economic support funds from Washington, as well as $300m a year in financing to spend on its armed forces.

The $360m-a-year figure that is earmarked for non-military spending will help Jordan’s government manage its budget deficit, which has grown rapidly since 2003.

According to the last update from the Finance Ministry in July, the budget deficit will reach JD826m ($1.2bn) or 6.5 per cent of gross domestic product during 2008.

The deficit has been increasing because of the rising cost of gas and food, which the government subsidises (MEED 7:7:08).