The deficit results from ordinary resources of $22.1 billion against charges of $25.2 billion.
Rabat – Morocco‘s Ministry of Economy and Finance revealed that execution of the finance bill at the end of June shows a budget deficit of MAD 28.8 billion ($3.1 billion).
The ministry’s assertion came as part of its report on the execution of Morocco’s finance bill, for the second quarter of 2020.
The deficit comes from ordinary resources of MAD 203.1 billion ($22.1 billion), excluding loan receipts, against charges of MAD 231.8 billion ($25.2 billion), excluding amortization of the debt.
“Taking into account the borrowing revenue of 53.4 billion dirhams and debt repayments of MAD 30.4 billion ($3.3 billion), the execution of the finance law shows an excess of expenses over resources of MAD 5.8 billion ($631 million),” reads the report.
The finance bill report also showed Morocco’s resources from the first half of 2020 as reaching MAD 256.5 billion ($27.9 billion), which represents 56.2% of the bill’s forecasts.
The overall resources of the state include MAD 125.5 billion ($13.6 billion) of ordinary receipts, amounting to 48.9% of overall resources. This figure translates to 48.8% of Morocco‘s finance bill forecasts.
In addition, medium- and long-term loan receipts reached MAD 53.4 billion ($5.8 billion). This accounts for 54.9% of Morocco’s finance bill forecasts.
The state’s resources also include Special Treasury Accounts (CST) amounting to MAD 76.8 billion ($8.3 billion). This represents 76.6% of the finance bill’s outlook.
Finally, the revenues of autonomously managed state services (SEGMA) reached MAD 813 million ($88.6 million), or 0.3% of the state’s overall resources. This translates to 36.3% of the finance bill’s forecast.
For state charges, Morocco reached MAD 262.3 billion ($28.5 billion), or 52.6%.
The overall charges of the state include MAD 126.3 billion ($13.7 billion) of ordinary receipts, amounting to 48.1% of overall resources. This figure achieved 50.4% of Morocco’s finance bill forecasts.
The state’s charges also include investment expenses, which amounted to MAD 36.3 billion ($3.9 billion). This represents 13.8% of total charges at the end of June 2020, and 46.4% of Morocco’s finance bill outlook.
Meanwhile, CST expenses reached MAD 68.7 billion ($7.5 billion), to represent 26.2% of overall charges, and 68.7% of the bill’s outlook.
Finally, debt repayments amounted to MAD 30.4 billion ($3.3 billion) to cover 11.6% of the total of charges, or 45.1% of the finance bill forecast.
Morocco’s House of Councillors approved the amended 2020 finance bill on July 17 with a majority vote. Twenty-nine deputies approved the bill, 13 rejected it, and four abstained.