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An increase in spending on projects and in current expenditure widened Morocco’s budget deficit in the first half of 2023, prompting a government pledge to work for bringing the shortfall under control.
The deficit in the first half of 2023 surged to around 27.8 billion Moroccan dirhams ($2.72 billion) from nearly MAD18.2 billion ($1.78 billion) in the first half of 2022, according to a report by the Moroccan Economy and Finance Ministry.
The report, published by the Arabic language daily Hespress at the weekend, showed total spending swelled by MAD13.8 billion ($1.35 billion) while revenues rose by around MAD4.2 billion ($411 million).
“Because of these financial results in the first half of 2023 and possible change in the economy in the remaining months of the year, the necessary measures will be taken regarding both revenues and spending in order to contain the deficit and bring it within the level set by the Ministry at 4.5 percent of GDP,” the report said.
It showed actual spending stood at MAD158.3 billion ($15.52 billion) in the first half of 2023, an increase of nearly 6 percent over the spending in the first half of 2022.
Capital spending also grew by 8.1 percent and current expenditure, including salaries to civil servants and government purchases, rose by about 2.3 percent, according to the report.
(Writing by Nadim Kawach; Editing by Anoop Menon)
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