JOD 18,000 per year or to NAF beneficiaries (for whom the transfer was JOD 33 per person). This transfer reaches nearly 80 percent of the population.

Residential water and electricity bills are subsidised in Jordan. The subsidy received depends on the level of household consumption of the utility (kilowatts per hour or cubic metres) according to a tariff structure. For electricity, the lower consumption slabs receive a subsidy while there is a tax imposed on the higher consumption slabs (see appendix 2). The proportion of household consumption in brackets with tariffs below the cost of delivery for electricity (120 fils/kwh) and water (JOD 2.19/m3 for water) are subsidised,<sup>11</sup> while the proportion above is effectively taxed. The water bill also varies depending on the governorate of residence<sup>12</sup> and by whether the household is connected to sewage, in which case the bill also includes a charge for this service. The electricity bill also includes a fuel adjustment cost (FAC) of 10 fils, which is charged to households whose overall consumption is above 300 kw/month.<sup>13</sup> In addition to the incidence of water and electricity subsidies through residential tariffs, there are subsidies and levies on the industrial and commercial sectors. The extent of cross-subsidisations would be reflected in higher consumer prices as water and electricity are important inputs in the production of many goods and services in the economy. The industrial tariff for water is uniform, except for the agricultural sector, which pays a lower tariff cross-subsidised by the cost in other industries. On the other hand, Jordan has a complex industrial electricity tariff structure; the tariffs, and hence the indirect household impact of these, differ widely by sector of economic activity, with some sectors being subsidised and some paying cross-subsidies.

Public education and health<sup>14</sup> expenditures included here account for about 6 percent of GDP in 2018. Early childhood education (KG1 and KG2) starts at age 4. Basic schooling (primary and middle school) is free and education is compulsory for all children in this cycle (between the ages of 6 and 15) (Abu-Ghaida, 2016). Enrolment rates in this basic cycle are close to universal, except for children in the bottom decile, 8 percent of whom are not enrolled in school. Most children at this level attend public schools, over 70 percent in deciles 1 to 7 and still a sizeable share, 53 and 35 percent respectively, in the top two deciles. Secondary schooling lasts 2 years and has a vocational and an academic track, the latter being followed by tertiary education (Abu-Ghaida 2016).

According to figures from the 2015 census, 68 percent of Jordanians are covered by health insurance (High Health Council 2016). Jordan provides public insurance through the Ministry of Health (MOH), as well as through the Royal Military Service and the University Hospitals (Halasa-Rappel _et al._ 2019). The Civil Insurance Program (CIP), managed by MOH and which has a contributory and a subsidised component. CIP covers mostly civil servants and their dependents, who contribute 3 percent of their monthly salary up to a maximum contribution of JOD 30 per month, as well as children under six years old, older adults above 60 years old and those affiliated to NAF and other poor households being referred to by the MoSD, whose premiums are fully subsidised by the government. Those insured under CIP can receive mostly free

> 11 For water, these estimates represent the full cost-recovery reflecting the production costs after taking into account all other losses. Estimates are from the World Bank Water team based on Water Authority of Jordan audited financials.

> 12 The Water Authority of Jordan (WAJ) is the main entity responsible for the water supply in the country. Amman, Aqaba, Irbid, Jerash, Aljoun, Mafraq and Zarqa are served by subsidiary water companies. 13 Fuel prices adjusted monthly since discontinuation of fuel subsidies.

> 14 Not accounting for CIP premiums transferred by NAF to the MoH.