Morocco is heading towards unprecedented measures at the budget level in order to face the repercussions of the Coronavirus on the economy and citizens.
The draft decree to be approved requires that the ceiling of external borrowing be exceeded and that some expenditures be suspended, which indicates the financial difficulties facing the Kingdom.
The decree project allows the Minister of Economy and Finance, Mohamed Benchaaboun, to exceed the ceiling of external borrowing that was set by the Parliament before the spread of Corona at $3.1 billion. The second procedure is to suspend all obligations of expenditures and budgets of the running state facilities independently, and the special accounts of the treasury and public institutions.
This measure excludes personnel expenses, health, and security sector expenditures, expenses for the treatment of coronavirus consequences, water, electricity, and communications expenditures, student support expenses, and social cohesion support expenses.
It also excludes the necessary management and investment expenses, which are of an urgent nature. These measures were justified by the effects of Corona on the economy and public finances, after the activity of the auto, textile and tourism industries ceased, with an impact on fiscal and customs revenues.
Source (The New Arab Newspaper, Edited)
