Crisis budget in Morocco
The 2012 fiscal law may be ready before the early legislative elections which are expected to take place on 25 November. "The new budget will be a crisis budget; it's expected that it will use the same data as 2011", Abdul Salam Adib, an economic analyst said.
In a statement to the Elaph news site, he explained that significant investment is not on the table due to the massive worldwide financial crisis. "Global demand has shrunk by 50%; accounting for the fact that Morocco is very much tied to what happens abroad". The analyst contended that there will be an austerity budget and added that we are currently facing crisis countries, after the world witnessed a financial then economic crisis.
Morocco has attempted to sell off some its state-owned assets to help maintained the 2011 budget deficit at 3.5% of GDP, which is the maximum amount to spare it from resorting to global bond markets.
In the midst of uprisings in neighbouring countries and demands from some quarters for reform domestically, Rabat has added MAD15 billion (Morocco dirhams) ($1.84 billion) to the MAD17 billion already allotted to the 2011 budget Support Fund.
The budget was based on an oil price of $75 per barrel. Official data shows that Morocco, which has a population of 33 million, imported 5.24 million tons of crude oil in 2010.
The Communications Minister and Government Spokesman Khalid Naciri said that there is no financial crisis in Morocco, only a financial hardship due to the difficult situation imposed on the country by the global financial crisis.
In a press interview following a government council meeting, the Minister added that the Moroccan economy has managed, despite the significant rise in the price of raw materials, and the ordeal facing global financial markets, to maintain an important growth rate. On the other hand, the Bank of Morocco affirmed that its need for liquidity rose to MAD28.3 billion in July, against MAD22.2 billion the previous month.
In its monthly publication on the economic, financial and monetary circumstances in the country, the bank noted that it has increased advances on loan applications to 7 days , reaching MAD30 billion instead of June's MAD24 billion. The interest rate between banks averaged at 3.31% during last month, – an increase of 2 base points compared to the previous month. (Source: www.yallafinance.com)