Morocco's state budget posts $420 million surplus

Morocco's general state budget posted during the first seven months of the 1999-2000 fiscal year a surplus of $420 million, compared to a deficit of $440 million in 1998-1999.

The Ministry of Economy and Finance which disclosed the figures attributed the surplus to the revenues of the second GSM license, sold for $1.02 billion to a Spanish-Portuguese-Moroccan corporation "meditelecom."

The tax returns have progressed by 6.7% by the end of January 2000, mainly thanks to the increase of the returns of corporate taxes (40%) and the internal tax on consumption of energy products (12%).

The revenues of the VAT (value added tax) have also progressed by 19.5%, the finance department said explaining that this increase was scored after "les Charbonnages du Maroc" company paid its arrears.

Custom taxes have recorded a slight increase of 0.8% while expenses of the state general budget have dropped mainly thanks to a decrease in external debt interests which helped the state save $1. 67 billion. Meanwhile, investment expenses have increased by 13.5%, the economy and finance department said.