The governamental council approved a detailed plan of the three major axes Morocco’s finance bill for 2021.
Rabat – Morocco’s Government Council approved on Friday the 2021 Finance Bill as well as three related decrees. The law prioritizes the creation of job opportunities and social security coverage.
Government Spokesperson Saaid Amzazi said in a press release that the 2021 Finance Bill also entails provisions on furthering government support for national companies, including the reform of public establishments and enterprises.
Amzazi explained that Morocco’s 2021 Finance Bill will cover three major axes, with the main goal of reviving the Moroccan economy after the COVID-19 crisis.
The first axis of the bill concerns financial efforts on the protection of jobs, including increased support to ease the flow of cash for companies, especially very small and medium-sized enterprises.
There is also the establishment of a “global plan” to salvage employment. This was made possible by the signing of an agreement, the “Pact for Economic Recovery and Employment,” between the government and the private sector.
The pact is part of Morocco’s economic recovery plan which the Economic Monitoring Committee (CVE) launched in May while introducing other post-COVID measures. Itwas signed on August 6 in Rabat.
The European Bank for Reconstruction and Development (EBRD) has allocated a loan of MAD 430 million (€40 million) to Morocco’s branch of CaixaBank to support Spanish and Moroccan SMEs operating in Morocco.
Amzazi indicated that the government also reinforced public investment to reach a global amount of MAD 230 billion ($25 billion), including MAD 45 billion ($4.8 billion) for King Mohammed VI’s Fund for Investment.
King Mohammed VI announced his plan to create the fund during his Throne Day speech on July 29. In his speech, the Moroccan monarch ordered the injection of MAD 15 billion ($1.6 billion) ino the economy from the state budget.
The second axis of Morocco’s 2021 Finance Bill has to do with the launch of the generalization of Basic Medical Coverage over two years, 2021 and 2022.
This falls within law 65-00 about the code of medical coverage, which is part of Law 98-15 about compulsory health insurance for professional and independent workers. The bill also covers self-employed citizens exercising a free activity.
The second axis also lays on the reform and the upgrading of hospital structures across Morocco.
During a session at the House of Representatives on September 28, Minister of Economy Mohamed Benchaaboun also noted that the 2021 Finance Billwill prioritize both the Education and Health sectors.
The minister said Morocco will reserve 5,500 budget items for the health sector, an increase of 1,500 items compared to 2020.
The third axis of the 2021 Finance Bill relates to the reform of public establishments and enterprises. One of the objectives is to eliminate some companies or their subsidies, especially if their existence no longer fits with the objectives of their creation.
The government spokesperson also stated that a bill is being prepared to organize the work of public enterprises.