Morocco: a budget deficit of 69.5 billion dirhams at the end of December

The situation of Treasury expenses and resources (SCRT) at the end of December 2022 shows a budget deficit of 69.5 billion dirhams (MMDH), an improvement of nearly 0.4 point of GDP, compared to the same period of 2021, according to the Ministry of Economy and Finance.

“At the end of 2022, the SCRT shows a continuation of the downward trend in the budget deficit to 69.5 billion dirhams or 5.1% of GDP, an improvement of nearly 0.4 point of GDP, compared to both to the achievements of 2021 than to the forecasts of the LF 2022″, indicates the ministry in a document on the SCRT for the month of December 2022.

This control of the deficit is explained, according to the same source, by the improvement in revenue, both tax and non-tax, which made it possible to cover the increase in expenditure resulting in particular from the measures taken by the State to counter the impact of soaring prices on household purchasing power and business activity and maintaining the investment effort at a sustained level.

Indeed, tax revenue showed good behavior overall, with a growth rate of 37.3 billion dirhams or 17.4%, thus showing an achievement rate of 113%, despite the significant effort of the State in terms of tax refunds, which related to a total amount of 19.5 billion dirhams, including the share borne by local authorities, against 14.6 billion dirhams at the end of December 2021 and 11.2 billion dirhams under the forecast of the LF.

For their part, non-tax revenue, amounting to nearly 48.7 billion dirhams, recorded an achievement rate of 135% compared to the forecasts of the FL.

The SCRT also shows an increase in ordinary expenditure of nearly 36.4 billion dirhams (+14.4%) and an execution rate of 110%. Compared to 2021, this change is mainly due to the increase in compensation costs (+20.3 billion dirhams) and expenses for goods and services (+14.7 billion dirhams).

The increase in compensation costs is attributable, in particular, to the rise in the price of butane gas, which reached an average of $739/T against nearly $627/T at the end of December 2021. These costs, which increased located at 42.1 billion dirhams, include subsidies granted to professionals in the transport sector for an amount of nearly 4.4 billion dirhams, as part of the measures decided by the Government to deal with the increase in the price of energy products .

The increase in expenditure on goods and services covers an amount of nearly 7.3 billion dirhams for personnel expenses and 7.4 billion dirhams for “other goods and services”.

Debt interest, for its part, increased by 1.5 billion dirhams to stand at 28.6 billion dirhams, resulting from an increase in interest on the domestic debt (+1.2 billion dirhams) and, in a to a lesser extent, interest relating to the external debt (+275 million dirhams MDH).

These changes in ordinary revenue and expenditure resulted in a positive ordinary balance of 15.7 billion dirhams, against nearly 4 billion dirhams in 2021.

With regard to investment expenditure, issues reached 93.8 billion dirhams, against nearly 16 billion dirhams a year earlier. Compared to the LF 2022 forecasts, their achievement rate was almost 120%.

For their part, the special Treasury accounts (CST) generated a surplus balance of 8.6 billion dirhams, against 3.6 billion dirhams at the end of December 2021.

The resources of the CST take into account an amount of 6.7 billion dirhams corresponding to the proceeds of the Social Solidarity Contribution on profits and income, allocated to the Support Fund for Social Protection and Social Cohesion, against nearly 4 MMDH in 2021.

The SCRT is the statistical document that presents the results of the execution of the forecasts of the LF with a comparison with the achievements of the same period of the previous year.

While the situation produced by the General Treasury of the Kingdom (TGR) is fundamentally accounting in nature, the SCRT apprehends, as recommended by international standards in terms of public finance statistics, the economic transactions carried out during a budgetary period in describing, in terms of flows, ordinary revenue, ordinary expenditure, investment expenditure, the budget deficit, the financing requirement and the financing mobilized to cover this requirement.

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