Speculations about budget deficit reaching 9% in 2012 ‘baseless’, minister

Rabat – Sept. 7, 2012 (MAP)

Speculations saying that the budget deficit has reached 9% in 2012 are “baseless”, Economy minister Nizar Baraka said, adding that the government is making huge efforts to curb the shortfall at 5% of GDP instead of 6.1% in 2011.

Speculations about budget deficit reaching 9% in 2012 ‘baseless’, minister.

The budget deficit debate touched on the big difference between estimates in the appropriation bill and results posted recently, Baraka told on Friday Al Massae daily.

The deficit forecast in the 2011 appropriation bill did not exceed 3.5% of GDP, but it rose to 6.1% by the end of the year due to the surge in raw material prices on international market, he explained.

This is why expenses by the subsidy fund exceeded 48 billion dirhams, in addition to the social dialogue which made State spending increase by 13 billion dirhams, he added.

The public finance results and the measures that will be taken will help controlling this deficit, he underlined, noting that estimates project an amelioration mainly of tax revenues.