The Moroccan government requested the approval of the parliament to increase its budget by an additional $1 billion or 10 billion dirhams to meet rising expenditures, Moroccan economic media reported.
The funds are needed to bolster the budget amid an inflationary context marked particularly by drought and reforms.
In this respect, 4 billion dirhams of the new credit will go to Morocco’s electricity utility which has been suffering from chronic debt triggered by a surge in coal and fuel prices.
Water supply will take 1.3 billion dirhams as Morocco forges ahead with its 2020-2027 plan to which $14 bln have been allocated in total. The plan aims to build more dams and desalination plants.
The sector of tourism will have 1.2 billion dirhams from the new credit line sought by the government, while 3.3 billion dirhams will be allocated to measures aiming to mitigate inflation and strengthen the citizens’ purchasing power.
The government’s 2023 budget was based on assumptions most of which require an update now with the surge of inflation to 8.2% in March, driven by food prices.
The government’s 2023 budget forecasts a growth rate of 4% and a fiscal deficit of 4.5%. Most international financial institutions, including IMF, World Bank and the EBRD expect Morocco’s economic growth to stand at around 3%.
