The Moroccan Treasury has announced a budget deficit of MAD 21.8 billion ($2.28 billion) in June 2019, up from MAD 20.4 billion ($2.14 billion) at the same time last year.
Rabat – The Moroccan Treasury has released public finance figures for the month of June 2019. The figures show that Morocco’s budget deficit has increased to MAD 21.8 billion ($2.28 billion).
Gross tax revenue rose 4.5% to MAD 110.8 billion in June, up from MAD 106 billion at the same time last year.
The Treasury figures also show state spending stood at 182.5 billion in June 2019, up 15.4% since last year.
The budget deficit would have been much greater had it not been for the government’s sale of 8% of its shares in the Moroccan telecommunication provider Maroc Telecom last month.
The sale was the first step in the government’s plan to raise up to MAD 6 billion in privatisations, selling its assets to reduce the budget deficit. The government also plans to sell shares in “Energie Electrique de Tahaddard,” which runs a hydrothermal power plant, and the famous Mamounia Hotel in Marrakech (65% owned by the state railway operator ONCF).
According to a press release by the High Commission for Planning (HCP) last week on Morocco’s 2019 economic situation, state spending in 2019 represented close to 25.9% of GDP, an increase from 25.2% of GDP in the previous year. According to the HCP, the budget deficit this year would therefore have increased by 4.5% in 2019, up from 3.7% in 2018, without including the privatisations taking place this year.
Counting privatisation revenue, the deficit represents 3.6% of GDP, notes the HCP.
HCP expects treasury debt to increase to 65.3% of GDP in 2019, up from 64.9% in 2018. The HCP also predicts a slowdown in economic growth to 2.7% in 2019, down from 3% in 2018.