Canada markets open in 3 hours 44 minutes
  • S&P/TSX

    20,464.60
    -195.39 (-0.95%)
     
  • S&P 500

    4,513.04
    -53.96 (-1.18%)
     
  • DOW

    34,022.04
    -461.68 (-1.34%)
     
  • CAD/USD

    0.7817
    +0.0010 (+0.13%)
     
  • CRUDE OIL

    66.92
    +1.35 (+2.06%)
     
  • BTC-CAD

    72,445.05
    -952.13 (-1.30%)
     
  • CMC Crypto 200

    1,444.71
    -24.37 (-1.66%)
     
  • GOLD FUTURES

    1,776.20
    -8.10 (-0.45%)
     
  • RUSSELL 2000

    2,147.42
    -51.49 (-2.34%)
     
  • 10-Yr Bond

    1.4340
    0.0000 (0.00%)
     
  • NASDAQ futures

    15,927.75
    +58.00 (+0.37%)
     
  • VOLATILITY

    28.66
    +1.47 (+5.41%)
     
  • FTSE

    7,116.37
    -52.31 (-0.73%)
     
  • NIKKEI 225

    27,753.37
    -182.25 (-0.65%)
     
  • CAD/EUR

    0.6895
    +0.0002 (+0.03%)
     

Morocco projects 9% fiscal spending rise next year

·2 min read

By Ahmed Eljechtimi

RABAT, Oct 26 (Reuters) - Morocco's draft 2022 budget projects a 9% rise in total spending to 519 billion dirhams ($57 billion) according to Finance Ministry documents officially made public on Tuesday after headline deficit and growth forecasts were announced last week.

The budget plan aims to spur economic recovery amid the pandemic and boost spending on public investment, education, health and social welfare, Finance Minister Nadia Fettah Alaoui told reporters.

If approved, the draft budget would require financing of 105 billion dirhams and it includes a request to parliament to increase the government's foreign debt ceiling to 40 billion dirhams.

Fettah Alaoui said the government would examine the possibility of issuing bonds based on market conditions.

The government said last week the budget projects next year's deficit to narrow to 5.9% from the 6.2% expected this year as the economy continues its recovery from the pandemic.

Parliament has yet to examine the budget, which projects economic growth next year of 3.2%, assuming an average cereals harvest of 8 million tonnes and a rise in exports, Fettah Alaoui said.

This year the government expects a rapid rebound in growth to 5.6% after the 6.2% contraction due to the pandemic and drought last year.

The government expects a 25% rise in tax revenue to 262 billion dirhams as it works "to enlarge the tax base in order to fund social welfare", she said.

Morocco has announced plans to expand social welfare and health insurance coverage to all citizens including those in unregulated economic sectors who have previously been left out.

The spending plans include money to employ 125,000 people on temporary contracts next year as the total state payroll is expected to increase by 5.4%.

Public debt stands at 76% of GDP, according to official figures.

Foreign currency reserves are projected to increase from 335 billion dirhams ($37 bln) this year to 345 billion dirhams in 2022, enough to cover seven months of imports, central bank data showed. (Reporting by Ahmed Eljechtimi; editing by Angus McDowall and Angus MacSwan)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting