Rabat - The Moroccan Treasury has a deficit of MAD 7.6 billion in the first quarter of 2018, a slight improvement from the MAD 8 billion in the same period a year ago, says the Directorate of Treasury and External Finance (DTFE).
Rabat – The Moroccan Treasury has a deficit of MAD 7.6 billion in the first quarter of 2018, a slight improvement from the MAD 8 billion in the same period a year ago, says the Directorate of Treasury and External Finance (DTFE).
The lowered deficit was mainly driven by a decrease in overall expenditures, at a greater rate than that of revenue, especially tax revenue, explained the DTFE in its May 2018 business outlook.
Tax revenue has declined by 1.7 percent to MAD 986 million in the first quarter of 2018, implying a drop of 10.1 percent to MAD 2.9 billion in direct taxes and rise by 5.2 percent to stand at MAD 1 billion in indirect taxes.
The drop in direct taxes is primarily due to a decline in corporate taxes revenue (IS) by 16.7 percent to MAD 14.9 billion, the result of poor performance in 2017 of the financial sector, petroleum companies, the national agency of land conservation, cement plants, sugar companies, and telecommunications companies compared to 2016.
In addition, revenue from income tax (IR) rose by 1.1 percent to MAD 10.5 billion.
Concerning indirect taxes, value added tax (VAT) rose by 7.1 percent to MAD 997 million, due to the progression of both internal VAT and import VAT by 6 percent to stand at MAD 320 million and 7.8 percent to MAD 677 million, respectively. On the other hand, revenues from consumption internal taxes (TIC) increased slightly by 1 percent to MAD 6.5 billion from the same period a year ago.
Revenue from customs fees increased by 22.7 percent to MAD 468 million. Registration and stamp duties improved by 6.8 percent to MAD 378 million.
Non-tax revenues decreased by 18 percent to MAD 375 million, primarily due to the diminution in competition funds to MAD 48 million from MAD 116 million. In addition, gas pipeline royalties appreciated to MAD 482 million from MAD 317 million, and revenue from debt relief to MAD 177 million from MAD 116 million.
Ordinary expenditures recorded a drop of 2.6 percent to MAD 1.4 billion during the first quarter of 2018 in comparison to the same period in 2017. The trend is caused by a decrease in salary costs and interest on debt.
Both expenditures on compensation charges and interest on debt have also dropped by 14.4 percent to MAD 656 million, and by 13.5 percent to MAD 914 million, respectively. The drop is primarily related to the decline of interest charges on domestic debt, while the external debt has remained stable in comparison to the same period in 2017.
Operation expenditures has recorded a slight increase of 0.3 percent to MAD 124 million, driven mainly by the increase of 613 million dirhams (2.3 percent) of salaries, while other goods and services recorded a decrease of 489 million dirhams (2.8 percent).
Investment expenditures amounted to MAD 19 billion, a drop of MAD 2.5 billion (11.7 percent) in comparison to March 2017.
The Treasury’s borrowing requirement stands at nearly 13 billion dirhams against 14.8 billion dirhams a year ago, given the MAD 5.3 billion decrease in expenditures pending a payment and a positive balance of MAD 7.8 billion of the Treasury’s special accounts.