Moroccan Municipalities Face Financial Crisis as Tax Revenues Plummet 30%

The tax revenues of local authorities have fallen by 30% compared to 2021, according to data from the Treasury General. As for the revenues from direct and indirect taxes and amounts transferred by the Ministry of the Interior, they have recorded a sharp decline at the beginning of this year due to the drop in VAT revenues, reports Assabah. As a result, municipalities are in financial difficulty.

Local authorities are thus unable to implement the procedures for developing their action programs as provided for in the organic law 113-14. After the election of their offices, the municipal councils have one year to complete the design of their general guidelines and submit them for study and approval. But the drop in the tax revenues of the municipalities makes this task complicated.

For now, the leaders are waiting for the directives of the Ministry of the Interior to mobilize other forms of financing or resort to domestic or foreign borrowing to compensate for the drop.