The budget deficit at 51.2 billion dirhams at the end of October

The situation of charges and resources of the Treasury (SCRT) at the end of October 2021 shows a budget deficit of 51.2 billion dirhams (billion dirhams), being at the same level as that recorded a year earlier, indicates the Ministry of the Economy. and Finance.

This change should be analyzed taking into account in particular a base effect linked to the impact on tax revenue of the abrupt cessation of activity in 2020, in particular during the period of containment and the surplus of 8, 5 billion dirhams at the end of October 2020 from the special fund for the management of the Covid-19, explains the ministry which has just published the SCRT for the month of October 2021. This is also the recovery in economic activity observed during the year in progress, in particular in relation to the good agricultural season, the strengthening of domestic demand and the progress of the vaccination campaign under favorable conditions, relative relaxation, from June, of health restriction measures and the rise in international prices of energy products, such as butane gas, adds the same source. Receipts thus recorded, on a net basis of refunds, reductions and tax refunds, an increase of nearly MAD 21.3 billion compared to the end of October 2020 and an achievement rate of 85.1% compared to the forecasts of the law of finance (LF).

In detail, non-tax revenues continued to improve, with the exception of corporation tax (IS) which fell by 8.4%, in connection with the decline in activity in 2020. Overall, these revenues increased by 10.3%, ie an achievement rate of 90.2%. This increase is 12.7%, if we take into account the solidarity contribution allocated, in 2021, to the Social Protection and Social Cohesion Support Fund. Refunds, deductions and tax refunds, for their part, reached an amount of MAD 7 billion, almost the same level as at the end of October 2020. Regarding non-tax revenue, they stood at MAD 22.3 billion. from products paid by public establishments and enterprises (9.2 billion dirhams), in particular OCP (4.1 billion dirhams) and the National Agency for Land Conservation, Cadastre and Cartography (2.5 billion dirhams). Income from the disposal of State holdings contributed an amount of MAD 5.4 billion following the sale of 35% of the capital of Marsa Maroc (MAD 5.3 billion) and of the entire investment. of the State in the capital of the company “Foncière International University of Rabat” of 110 million dirhams (MDH). For their part, “other income” stood at 7.6 billion dirhams, including 5.7 billion dirhams for products from ministerial budgets.

The ministry also notes that the execution of ordinary expenditure shows an increase of 7.5% and an execution rate of 84.4%. This change compared to the end of October 2020 is mainly explained by the increase in expenditure on goods and services of nearly MAD 9.8 billion, attributable to personnel expenses (MAD 7 billion), in particular under the effect of reminders and the 3rd tranche of the salary increase decided in 2019 as part of the social dialogue, and to “other goods and services” (nearly MAD 2.9 billion).

The compensation expense increased by MAD 4.7 billion, notably in connection with the increase in the price of butane gas which reached an average of 610 dollars / ton ($ / T) against nearly 364 $ / T a year ago. The interest on the debt remained relatively stable compared to the end of October 2020, standing at 25.3 billion dirhams, covering a slight decrease in those relating to the domestic debt (-67 million dirhams) against a slight increase in those under the external debt (+93 MDH). These changes in income and ordinary expenditure resulted in a negative ordinary balance of MAD 6.7 billion. With regard to investment spending, they increased by 1.6 billion dirhams, with issues reaching 51.8 billion dirhams. Compared to the forecasts of the LF-2021, their achievement rate was 76%.

In addition, the ministry indicates that the special treasury accounts showed a surplus balance of nearly 7.3 billion dirhams against 12.6 billion dirhams at the end of October 2020. The resources of these accounts take into account an amount of 3.8 billion dirhams. corresponding to the product of the social solidarity contribution on profits and income, allocated to the Social Protection and Social Cohesion Support Fund under the LF-2021.

On the financing side, given these developments and a reduction in pending operations of MAD 16.7 billion, the SCRT shows a need of around MAD 67.9 billion. This need was covered mainly by recourse to the domestic debt market and the mobilization of external financing for respective net flows of MAD 60.9 billion and MAD 7 billion, as well as by the increase in treasury deposits for an amount of 12, 6 billion dirhams and the net flow of investments on the money market (+1.2 billion dirhams) The flow of domestic debt covers subscriptions for an amount of 122.3 billion dirhams and principal repayments for 89.3 billion dirhams. That of external debt covers drawdowns of around 15.3 billion dirhams and depreciation of 8.2 billion dirhams.



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