Morocco's Prudent Public Spending Spurs Continued Investment Growth
Morocco has sustained positive momentum in public investments despite facing economic headwinds, as per government data. Mustapha Baitas, the government spokesperson and delegate-minister for parliamentary relations, highlighted an 83% execution rate for public projects during a recent press briefing.
Baitas commended the administration's "correct choices" in navigating crises such as the global pandemic recession. Reserves were promptly mobilized to address unforeseen expenses while investment initiatives proceeded uninterrupted. Furthermore, budget deficits have steadily decreased from 7.6% in 2020 to a projected 5.4% for 2022, underscoring prudent fiscal management.
To sustain this trajectory, an additional 53 billion dirhams ($5 billion) are needed to subsidize essential goods and utilities for citizens grappling with inflation, Baitas revealed. Approximately 40 billion dirhams will be allocated to subsidies, while 13 billion will cover value-added tax for enterprises.
Public bond issuance has surged by 14 billion dirhams, reaching a total of 96 billion dirhams, indicative of robust investment activity. Baitas emphasized the timely approval of the liquidation law, which facilitates the implementation of the 2022 finance budget, as evidence of diligent resource allocation meeting deadlines.
The government faced dual challenges of international volatility and inflation-induced price pressures, necessitating simultaneous efforts to alleviate economic hardships for Moroccans and advance reforms in infrastructure, spending, governance, and growth. Nevertheless, Baitas asserts that the prudent prioritization of public spending continues to yield dividends for Morocco amid these turbulent times. With ongoing deficit reduction and substantial investment allocations, Moroccan fiscal policy underscores stability and progress.