The General Treasury of Morocco has reported a notable increase in the budget deficit, up by $626.7 million for the year 2020 from the year prior. At the end of June 2020, the General Treasury of Morocco (TGR) recorded a budget deficit of MAD 28.8 billion ($3 billion) while examining the situation of expenses and resources. This was contained in the data published in TGR’s report on finance statistics in Morocco for the month of June shows a notable increase in the budget deficit of more than MAD 6 billion ($626.7 million) from the year prior.
Statistics from TGR show that the deficit takes into account a “positive balance of MAD 8.3 billion” — or $866.9 million — from the Special Accounts of Treasury (CST) and the Services of the State Managed Autonomously (SIGMA).The TGR report explains that the “execution of the finance law shows a negative ordinary balance” of MAD 805 million ($84 million) against a positive balance of MAD 2.3 billion ($240.2 million) in 2019. The statistics are on the basis of the receipts collected and the expenses issued.
Gross ordinary revenues, however, stood at MAD 125.5 billion ($13.1 billion) against 124.5 billion ($13 billion) at the end of June 2019. The result represents a 0.7% increase.TGR argued that this result is due to the increase in non-tax revenue (66.2%), combined with the reduction in direct taxes (3.1%), customs duties (3.9%), indirect taxes (9.6%), and registration and stamp duties (22.6%) .At the end of June 2020, gross tax revenue reached MAD 102.6 billion ($10.7 billion) against MAD 110.8 billion ($11.57 billion) in June 2019, representing a decrease of 7.4%.
The evolution of tax revenue is due to the 11.7% drop in customs revenue and the 5.7% decrease in household taxation.Morocco’s expenditure commitments, involving those not subject to prior commitment visa, amounted to MAD 315.9 billion ($33 billion) at the end of June 2020.The sum represents an overall commitment rate of 50% against 54% a year earlier.
“The issue rate on commitments was 83% against 79% a year earlier,” TGR reported. Investment expenses issued under Morocco’s general budget stood at MAD 36.3 billion ($3.79 billion) at the end of June 2020 against MAD 32.6 billion ($3.4 billion) in 2019.
The number represents an increase of 11.4%, amounting to MAD 3.72 billion ($388.56 million). This year’s budget deficit might be due to the continuous crisis resulting from COVID-19 in Morocco. The pandemic has notably impacted the country’s economy, urging the government to amend the 2020 Finance Bill to adequately face the recupressions.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry