The use of the Compensation Fund to support butane gas prices generated a cost of 8.5 billion dirhams (MMDH) from the beginning of the year until the end of May, representing a decrease of 1.3 MMDH compared to the same period of the previous year, according to data provided by the Ministry of Economy and Finance.
This drop in support is due to lower prices on the international market, which averaged $600 per tonne, compared to $879 the previous year.
Butane gas is the second most consumed liquid petroleum substance in Morocco, with consumption of around 2.7 million tonnes last year. It is mainly used for cooking, heating and irrigation.
In addition to butane gas, the state also subsidizes sugar prices for an amount of 2.2 billion dirhams during the first five months of the year, as well as flour for around 2.5 billion dirhams. The support granted to professionals in the transport sector cost 920 million dirhams.
In addition, the total expenditure of the Compensation Fund reached 14.2 billion dirhams, against 16.6 billion dirhams for the same period of the previous year, which represents a drop of 14.4%, underlines the Ministry of Finance.
The total support from the Compensation Fund for this year is expected to amount to around 21.2 billion dirhams, after reaching a record high of more than 40 billion dirhams last year due to the significant increase in prices. subsidized products.
Initially, the government planned to gradually reduce price support for subsidized products through the Compensation Fund this year, in parallel with the generalization of the social protection project and the implementation of the unified social register (RSU), which provides direct financial assistance to eligible families. However, this reform was postponed due to the instability of raw material prices.
According to the declarations of the Minister in charge of the budget, Fouzi Lekjaa, made this week in Parliament, the reform of the Compensation Fund will not be implemented this year, but it has not been canceled for all that.
The government plans to gradually reduce the support of the Caisse de compensation once the preliminary studies have shown that the beneficiaries are often ineligible people, since the products are subsidized independently of those who consume them.
This approach would make it possible to release the financial resources necessary to finance the social protection project, by taking charge of the share of the contributions of vulnerable people who benefit from the system. RAMED previously, for the benefit of the National Social Security Fund (CNSS).