Morocco to Allocate $2.9 Billion To Subsidize Staple Commodities in 2023

Morocco’s government to mobilize MAD 30 billion ($2.9 billion) in the fiscal year 2023 to subsidize staple food and energy commodities to preserve the national purchasing power.

Rabat – Morocco’s government to mobilize MAD 30 billion ($2.9 billion) in the fiscal year 2023 to subsidize staple food and energy commodities to preserve the national purchasing power.

In an official document on the 2023 Budget Draft Law, Morocco’s Head of Government, Aziz Akhanouch, explained that the government is to mobilize the said funds to mitigate the effect of rising inflation on the national purchasing power.

The figure marks a substantial increase from the $1.7 billion the government had allocated for the same purpose in the fiscal year 2021.

In addition to subsidizing basic food and energy commodities, the funds are meant to mitigate the effect of this year’s severe drought on the national economy, as well as support Morocco’s tourism and logistics sector.

The document, which details a list of the government’s priorities in the ongoing fiscal year, argues that maintaining social peace is central to the government’s agenda moving forward.

It says that the government would continue to reinforce social dialogue with labor unions and key players in the economy to improve working conditions for Moroccan workers.

Also on the government’s priority list in the coming fiscal year is the need to improve territorial justice, adds the document.

To achieve territorial justice, the government would continue to decentralize the economy and public service, paving the way for a region-based, socio-economic development model.

According to the document, decentralizing economic activities would eventually lead to social justice, as it would pave the way for the equal distribution of wealth and opportunities by increasing the flow of investment to all regions.