Moroccan House of Representatives adopts draft appropriation bill
Morocco, Economics, 5/20/1999

The Moroccan House of Representatives (lower house of parliament) adopted on Wednesday the draft appropriation bill for 1999-2000.

The text, which was passed by 131 votes against 55, will be presented Friday before the chamber of advisors (upper house) by Finance and Economy Minister Fathallah Oualalou.

A 1996 constitutional amendment set the Moroccan fiscal year from July to June to enable the bill drafters take into account the state of the cereals harvest and agriculture in general. Agriculture represents around 20 percent of the country's GDP and employs nearly half of an estimated 10-million workforce.

While presenting the bill before the house of representatives last month, Fathallah Oualalou said Morocco will post a growth rate of 3% in 1999 and of 5% in year 2000.

The government will continue efforts to curb inflation and control the major internal and external economic balances.

The bill heralds a continued increase in imports and exports and a stabilization of the phosphates sector, one of the major sectors of Moroccan economy.

It predicts a 2.8 decrease in budget deficit, while savings will stand at nearly $600 million. Up to 36% of the amount will be contributed to equipment projects, compared to 28% last year.

Public expenditures will stand at nearly 122 billion dh ($1 is 9.7 dh), i.e. 8.1 percent of the budget, while receipts will stand at around 106 billion dh. The receipts will come mainly from direct and indirect taxes, customs duties and privatization.

The public service will have its size reduced, and efforts will be made to improve its performance.

The government will see to suppressing vacant positions following their holders' retirement and will create only 10,980 new positions to cover the necessary needs of public administration.

As part of the 1999-2000 appropriations bill, the government will continue to handle the unemployment problem through the training-integration program that will cover 25,000 university graduates.

According to the draft appropriations bill, Morocco recorded a 6.3 growth rate in 1998, inflation stood at 2.8% and the treasury deficit was at 3% of the GDP.

During the same year, investments increased by 13%, equipment goods imports jumped by 36% and tourism receipts progressed by 18%. The remittances of Moroccan expatriates also increased by 6%.

Previous Stories:
  German officials vow to examine Moroccan debt reconversion   (5/19/1999)
  Current account deficit expected to remain below 1 percent of GDP   (5/7/1999)
  Moroccan government undertakes to fulfill social commitments   (5/7/1999)
  Morocco projects 3 percent growth this year, as budget deficit declines   (4/24/1999)

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