Morocco sees rise in subsidies spending to $3.2b

RABAT:

Morocco expects spending on subsidies of soft wheat, cooking gas and sugar to rise to 32 billion dirhams ($3.2 billion) from 21 billion dirhams last year, due to a surge in international prices, the prime minister told parliament on Monday.

The government earmarked 17 billion dirhams for subsidies in the budget, and the shortfall will be offset by higher tax revenue, Prime Minister Aziz Akhannouch said.

“So far we did not resort to additional loans or use a liquidity line,” he said, adding that tax revenue had risen by a quarter by the end of February compared to the same period of last year.

Last month, the central bank said Morocco’s fiscal deficit would remain unchanged at 6.3%, citing an increase in phosphate sales.

Published in The Express Tribune, April 19^th, 2022.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.