Morocco's draft budget for the year 2022 showed an increase of 9 percent in total spending to 519 billion dirhams, equivalent to 57 billion dollars.
H.E. the Moroccan Finance Minister Nadia Fattah Alaoui confirmed that "the budget plan aims to stimulate the economy's recovery amid the pandemic and boost spending on public investments, education, health and social care."
The government expects the deficit to decrease next year to 5.9 percent from 6.2 percent compared to the one expected for this year, while the economy continues to recover from the pandemic. According to the budget, economic growth is expected at 3.2 percent next year, assuming an average grain crop of eight million tons and an increase in exports. The government expects a rapid recovery to growth to 5.6 percent after a contraction of 6.2 percent last year due to the pandemic and drought. The government also expects a 25 percent increase in tax revenue to 262 billion dirhams as it works to broaden the tax base in order to fund social welfare.
The public debt in Morocco amounts to 76 percent of GDP, while the foreign currency reserves are expected to rise from 335 billion dirhams ($37 billion) this year to 345 billion dirhams in 2022, which is enough to cover seven months of imports.
Source (CNBC Arabic Website, Edited)
