The budget deficit stood at 41.9 billion dirhams at the end of July, against 24.2 billion a year earlier, ie an increase of 17.7 billion.
In one month, Morocco’s budget deficit widened by 12.8 billion, of which 4.8 billion correspond to the investment expenditure of the month and 6 billion for additional expenditure of the Special Fund for the management of the Covid pandemic. 19.
If we exclude the surplus recorded by the Special Fund for the management of the Covid-19 pandemic, the deficit amounts to nearly 51 billion, an increase of almost 27 billion compared to the same period of the year 2019.
These figures have just been unveiled on the occasion of the publication of the situation of charges and resources of the Treasury (SCRT) by the Ministry of the Economy and Finance and the Reform of the Administration, which shows the results of the execution of the forecasts of the finance law with a comparison with the achievements of the same period of the previous year.
According to the document, the evolution of ordinary income and expenditure resulted in a negative ordinary balance of around 12.9 billion dirhams, which is comparable with that recorded at the end of June last and which reflects a balance between income and ordinary expenditure for the month of July.
Regarding investment spending, issues reached 36 MM.DH, i.e. an achievement rate of 50.7% compared to the forecasts of the LFR and a decrease of 3.3% (-1.2 MM.DH) compared to the same period of 2019. This evolution is mainly due to the decrease in spending under ministerial budgets.
As for the special Treasury accounts, they showed a surplus of 7 MM.DH against 5.1 MM.DH at the end of July 2019, an increase of 1.9 MM.DH. This increase is mainly explained by the surplus of 9 MM.DH released by the Special Fund for the management of the Covid-19 pandemic, the other special Treasury accounts having recorded a negative flow of 2 MM.DH overall, against a surplus of 5.1 MM.DH a year ago.
Regular expenditure on the rise
Ordinary expenditure recorded, at the end of July 2020, an execution rate of 59.1% compared to the forecasts of the amending finance law and increased by nearly 7.3 MM.DH (+5, 5%) compared to the same period of the year 2019.
The pace of execution of this expenditure covers the following main changes:
An increase in expenditure on goods and services of 8 MM.DH (+ 7.6%) resulting in an achievement rate of 57.6%, in line with the forecasts of the amending finance law;
Virtual stability of interest net of debt; and
A decrease of 735 M.DH (-8.1%) in the compensation charge in relation to the fall in international prices of butane gas. Compared to the forecasts of the LFR 2020, the achievement rate is 70.3%.
The SCRT at the end of July 2020 took place in a context characterized by the continuation of the process of reducing the measures taken in the context of the state of health emergency, which resulted in the gradual resumption of certain economic activities. It also reflects the impact of the measures adopted by the Economic Watch Committee to counter the socioeconomic effects of the Covid-19 pandemic. This impact, which is perceptible at the level of both revenue and expenditure, has been mitigated thanks to the resources mobilized within the framework of the Special Fund for the management of the Covid-19 pandemic, which reached almost 33.7 billion dirhams. against expenditure of 24.7 billion DH.
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