The new Financial Law for the current budget, which was presented last week in parliament, includes a substantial increase in the Kingdom's budget, the Moroccan daily L'Economiste reported on April 7. The budget totals MD75,164 billion, reflecting a 19.67% increase compared to last year's budget of MD62,804 billion. Experts are demanding prudence in budget spending, citing that the evident growth is due to a seasonal augmentation caused by the government's privatization policies.
Examination of the new law reveals no changes in the tax burden. Though reclassification of certain taxes is being implemented, no further changes are expected in Morocco's financial structure. The main objective of this year's budget is to secure a balance between expenditures and revenues.
Major growth in the country's credit side is attributed to the two-fold income increase to be generated from Moroccan state-owned industries. Income resulting from the privatization program is expected this year to hit MD2.85 billion, constituting a 62.86 % growth comparison to last year. The Association Agreement signed with the European Union, which dismantled the custom regime, is expected to influence the Kingdom's revenues by causing a 9% decrease in customs income.
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