The General Treasury of Morocco reports a notable increase in the budget deficit, up by $626.7 million from the year prior.
The data published in TGR’s report on finance statistics in Morocco for the month of June shows a notable increase in the budget deficit of more than MAD 6 billion ($626.7 million) from the year prior.
Statistics from TGR show that the deficit takes into account a “positive balance of MAD 8.3 billion” — or $866.9 million — from the Special Accounts of Treasury (CST) and the Services of the State Managed Autonomously (SIGMA)
The TGR report explains that the “execution of the finance law shows a negative ordinary balance” of MAD 805 million ($84 million) against a positive balance of MAD 2.3 billion ($240.2 million) in 2019. The statistics are on the basis of the receipts collected and the expenses issued.
Gross ordinary revenues, however, stood at MAD 125.5 billion ($13.1 billion) against 124.5 billion ($13 billion) at the end of June 2019.
The result represents a 0.7% increase.
TGR argued that this result is due to the increase in non-tax revenue (66.2%), combined with the reduction in direct taxes (3.1%), customs duties (3.9%), indirect taxes (9.6%), and registration and stamp duties (22.6%) .
At the end of June 2020, gross tax revenue reached MAD 102.6 billion ($10.7 billion) against MAD 110.8 billion ($11.57 billion) in June 2019, representing a decrease of 7.4%.
The evolution of tax revenue is due to the 11.7% drop in customs revenue and the 5.7% decrease in household taxation.
Morocco’s expenditure commitments, involving those not subject to prior commitment visa, amounted to MAD 315.9 billion ($33 billion) at the end of June 2020.
The sum represents an overall commitment rate of 50% against 54% a year earlier.
“The issue rate on commitments was 83% against 79% a year earlier,” TGR reported.
Investment expenses issued under Morocco’s general budget stood at MAD 36.3 billion ($3.79 billion) at the end of June 2020 against MAD 32.6 billion ($3.4 billion) in 2019.
The number represents an increase of 11.4%, amounting to MAD 3.72 billion ($388.56 million).
This year’s budget deficit might be due to the continuous crisis resulting from COVID-19 in Morocco. The pandemic has notably impacted the country’s economy, urging the government to amend the 2020 Finance Bill to adequately face the recupressions.