Morocco’s 2022 Budget Deficit Projected at 5.9% of GDP, Exceeding Previous Forecasts

This deficit would thus exceed the forecasts of the 2021 Finance Law, as specified in the economic and financial report accompanying the draft finance law (PLF) for next year.

Net ordinary revenues should be around 262.6 MMDH, up 10.8% compared to the 2021 Finance Law, while the total amount of expenditure would be around 335.3 MMDH, the report states.

Regarding tax revenues, they should increase by 13.8% next year, compared to the 2021 forecasts, to reach 222.6 MMDH. This increase is explained by the foreseeable growth in revenues from direct taxes (20.9%) and indirect taxes (9.8%) and customs duties (11.7%) and registration and stamp duties (1.2%).

As for non-tax revenues, they would be 35.9 MMDH, recording a decrease of 5.5% compared to the 2021 Finance Law. These revenues come from 17.1 MMDH from payments made by public establishments and enterprises, 12 MMDH from revenues under the new mechanisms for financing public investments and 5 MMDH from revenues from the sale of state shareholdings.

As for the ordinary expenditure forecast for 2022, it would be around 261.3 MMDH, up 5.8% and would represent 21.4% of GDP, down 0.1 percentage point of GDP compared to the 2021 Finance Law forecasts.

As for the forecasts of issuance for the investment expenditure of the State General Budget, they should be around 78 MMDH, recording an increase of 14.5% compared to the forecasts of the 2021 Finance Law, or 6.4% of GDP.