Think-thank predicts budget deficit to exceed 3% of gdp in 2003

The Moroccan budget deficit will be considerable in 2003 and could exceed 3% of the GDP, says Moroccan think-thank "National Institute of juncture analysis."

If the 2003 finance bill forecasts a budget deficit of 13.3 billion DH (around US$ 1.4 billion)-3% of the GDP, the non-payment of fiscal receipts will weigh on the overall balance.

The institute also forecasts fiscal returns to slow down in 2003 while non-fiscal receipts will increase. Fiscal receipts will rise by 1.9%, due to a slowing down of the major taxes performance and the decrease in customs duties.

However, non-fiscal receipts will not reach the amount expected by the finance bill, after the privatization of "Banque Centrale Populaire" and of 16% of Morocco's phone company "Maroc Telecom" were delayed.

The institute also expects ordinary expenses to increase by 7.4% (after regressing in 202) while operating expenses will also grow by 8.7%. External debt services will continue to regress and subsidization efforts will remain relatively limited.