Councilors Approve 2024 Budget Despite Quakes and Drought
Rabat - The House of Councilors demonstrated unwavering resilience by approving Morocco's 2024 finance bill on Wednesday, allocating funds to tackle recent earthquakes and water shortages amidst prevailing economic uncertainties.
The bill secured passage with 45 votes in favor and 13 opposed. Its core objective involves a phased increase in value-added tax rates from 2024 to 2026, strategically designed to enhance revenue streams. Notably, it also earmarks substantial funding for disaster relief, responding to the aftermath of the September earthquake in Al Haouz that necessitated over $890 million for aid and reconstruction.
Minister Delegate Fouzi Lekjaa, addressing the Finance Committee last week, underscored the bill's adaptation to unforeseen challenges. An additional $495 million has been allocated to combat persistent drought conditions nationwide, reflecting the government's commitment to addressing pressing environmental concerns.
While acknowledging the bill's adherence to valid economic assumptions, Lekjaa emphasized the shifting priorities brought about by the earthquake and water crises, particularly impacting citizens. Paramount nonpartisan considerations include housing assistance, support for drought victims, and fortification of the Social Protection and Cohesion Fund.
The House Finance Committee granted approval to the initial section of the budget on December 1, overcoming some opposition. The final endorsement followed impassioned pleas from party leaders, emphasizing the paramount importance of unity and dialogue in the face of recent challenges.
Despite the promise of essential relief funds, the 2024 budget confronts economic uncertainties. While tax hikes are poised to bolster revenue, the specter of rising costs looms over household budgets in the coming year. Nevertheless, councilors underscore the indispensable nature of supporting victims of climate disasters, viewing it as a moral imperative during these challenging fiscal times.