Morocco: Budget Revenues Fell $4 billion Due to Corona

  • Rabat, Morocco
  • 23 May 2020

Morocco has revealed a decline in financial budget revenues of about 4 billion dollars during the period of home quarantine, which calls for searching for new revenues, in order to meet the spending that will maintain its level in the current year.

According to a government report, the kingdom’s treasury has lost about $50 million per day since the beginning of the quarantine and health emergency, which will take 80 days, since March 20, and is expected to end after the last extension on June 10. These missing revenues represent about 15% of fiscal revenue expected to reach $24 billion this year, and constitute twice of the non-tax revenue.

According to preliminary estimates of the International Monetary Fund, the budget deficit is expected to reach 7.1% this year. The level of the deficit expected by the International Monetary Fund evokes the effects of the Corona crisis over the next year, as fiscal revenues are expected to decline, due to the failure of the activity of companies operating in vital sectors.

The government used the revenues from donations, aids, and transfers from the budget to the pandemic fund, as it reached $3.4 billion to support workers who lost their job opportunities and support productive sectors, but it may be forced to support the activity through public spending in light of the economic take-off.

Source (New Arab Newspaper, Edited)