House of Representatives adopts 1998-99 appropriation bill
Morocco, Economics, 8/13/1998

The House of Representatives adopted Wednesday Morocco's 1998-99 appropriation bill that was submitted end of June.

The bill was endorsed by 152 votes for and 71 votes against and will have to go for adoption at the House of Advisors, the second chamber of the Moroccan parliament.

The bill, which projects to maintain the budget deficit at 3 percent of the Gross Domestic Product (GDP), has a significant social dimension in fighting poverty, improvement of living standards in rural areas and promotion of low-cost housing projects.

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

The finance bill increases the budgets of several social sectors, including the Public Health Ministry, whose budget was increased by 11 percent and the Social Development Ministry whose budget was multiplied five-fold. The budgets of the housing and youth and sports departments were increased by 40 and 47 percent respectively, while that of the Culture Ministry was increased by 45 percent.

The 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, Finance and Economy Minister Fathallah Oualalou had said when presenting the bill to the Parliament last June.

Regarding the private sector, the Minister said the draft budget seeks to build confidence in relations between the administration and the private operators. The proposed fiscal measures aim at promoting investments and activating the economic circuit towards the creation of job opportunities.

Touching on the projected 1998-99 receipts, Oualalou said receipts from direct taxes will increase by 15.6 percent, going up from 21.7 billion dh to 25.1 billion dh. Indirect taxes and customs receipts will record a decrease of 1.4 percent and 0.9 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 dh to the budget. The Moroccan carrier "Royal Air Maroc" will contribute 40 million dh.

Previous Stories:
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  King Hassan announces 25,000 youths will be hired annually   (7/10/1998)
  Morocco's trade deficit down 14.3 percent first two months   (7/4/1998)

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