Budget receipts slowdown affects public finances

The slowdown in budget receipts in 2002, resulting from the drop in non-fiscal revenues, will affect public finances, says a Moroccan think-tank group.

According to the National Institute of Juncture Analysis (INAC), the state investments will be reduced while operations by the Hassan II fund will be sustained.

Meanwhile, fiscal revenues will maintain the same level as the tax level will stand at 21.4% of the GDP, compared to 20% in 2001.

The investment budget, which will be regressing compared to the last two years, will register a 18.5% decrease in annual variation while the salary share will account for 12.7% of the GDP, an increase of 6.6%.

The institute forecasts that this will entail a deficit of 12 Billion DH (US$ 1.04 billion) in the state budget, which will account for 3% of the GDP in 2002.