Morocco 1998-99 appropriation bill focuses on economy
Morocco, Economics, 6/30/1998

Morocco's 1998-99 draft appropriation bill, which was submitted on Sunday to the House of Representatives (lower house), seeks to consolidate economic growth and improve Morocco's social situation.

The draft bill, which aims at maintaining the budget deficit at 3 percent of the Gross Domestic Product (GDP), will have a significant social dimension through insisting on the struggle against poverty, improvement of living standards in rural areas and promotion of low-cost housing projects, Moroccan Minister of economy and finance, Fathallah Oualalou, told the House of Representatives.

Expenses will amount to 132,195,385,000 Dirhams and receipts will stand at 118,428,567,000 DH in this year's budget.

In the projected bill, several social sectors had their budgets multiplied, including the Public Health ministry whose budget was increased by 11 percent and the social development ministry whose budget was multiplied 5 folds. The budgets of the Housing and the Youth and Sports departments were increased by 40 and 47 percent respectively, while that of the culture ministry was increased by 45 percent.

The draft appropriation bill also provides for the generation of 12,000 jobs in addition to those that will become vacant following retirements.

The government does not contemplate any tax increase in order to consolidate credibility inside and outside the country.

"The draft bill did not include any measure likely to destabilize the present fiscal system," Oualalou said, Map reported.

Regarding the private sector, the Minister said the draft budget seeks to establish a climate of trust in relations between the administration and the private operators. The proposed fiscal measures aim at promoting investments and enhancing the creation of job opportunities.

Unemployment is one of the major social challenges posed to Morocco. Moroccan Prime Minister Abderrahmane Youssoufi, said lately it would be difficult to fight unemployment without an economic growth rate of 7 to 8 percent.

Touching on the projected 1998-99 receipts, Fathallah Oualalou said receipts from direct taxes will increase by 15.6 percent, going up from 21.7 billion dh to 25.1 billion dh (1 USD is 9.8 dh). Indirect taxes and customs receipts will record a decrease of 1.4 percent and 09 percent respectively.

The fisheries accord, concluded between Morocco and the European Union, will earn the state treasury 1.51 billion dh, while privatization will bring in 2 billion dh against 4 billion in 96-97.

Major state-owned enterprises such as the "Office Cherifien des Phosphates" (OCP), The "office National d'Electricite" (ONE) and "Itissalat Al-Maghrib" will contribute respectively 900 million, 550 Million and 500 Million df to the budget. The Moroccan carrier "Royal Air Maroc" will contribute 40 Million df.

The budget will be debated at the House of Representatives before being endorsed.

Previous Stories:
  Preparatory meeting for joint high commission between Morocco-Libya   (6/30/1998)
  Morocco will be endowed with a modern customs code   (6/26/1998)
  Morocco's ministers council adopts 1998/99 appropriation bill   (6/23/1998)

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