Morocco’s Budget Deficit Hits 6.7 Billion Dirhams Amid Pandemic Relief Efforts

According to the Moroccan Ministry of Economy, Finance and Administrative Reform, the analysis of the situation recommends taking into account the 18.3 MMDH mobilized in March 2020 as part of the Special Fund for the Management of the Covid-19 Pandemic. The other element to be taken into account is the temporary tax relief measure on certain distressed sectors and the program to generalize social protection.

As for revenues, they have fallen by nearly 2.7 billion dirhams compared to the end of March 2020, notes the ministry document, also noting a drop of 2.1 MMDH in tax revenues due to the non-renewal in 2021 of the measure relating to the social solidarity contribution on profits, instituted by the 2019 Finance Act. Apart from this contribution, tax revenues are showing a certain stability compared to March 2020. On the other hand, the document indicates, non-tax revenues recorded a decline of 0.9 MMDH, attributable, to the tune of 1.2 MMDH, to "trust funds".

In contrast to revenues, personnel expenses have increased due to the measures of the 3rd phase of the social dialogue, inform the ministry officials, adding that the compensation burden has increased by 0.3 MMDH due to the rise in the price of butane gas. A comparison of revenues and expenditures shows a negative ordinary balance of 1.2 MMDH, against a positive balance of 0.2 MMDH at the end of March 2020.

Regarding issues for investment expenditure, the document indicates a decrease of 19.3 MMDH with an implementation rate of 28.4%. The Treasury’s special accounts, for their part, generated a surplus balance of 13.9 MMDH, against nearly 27 MMDH at the end of March 2020.

Given these developments and a reduction in pending operations of 20.9 MMDH, the situation of Treasury charges and resources shows a financing requirement of around 27.6 MMDH, notes the ministry document.