Morocco's budget deficit widens 51% y/y to USD 3.7bn at end-April 2014

By bne IntelliNews June 18, 2014

Rising spending and falling revenue widened Morocco's gross budget gap by 51% y/y (up 14% at end-March) to MAD 30.7bn (USD 3.7bn) in the first four months of the year, the central bank said in its monthly report.

The central bank, however, remained upbeat on the kingdom’s fiscal position, forecasting the budget gap to narrow to 4.9% of GDP in 2014 from 5.5% of GDP the year before. The recently adopted 2014 state budget that envisages a deficit of MAD 32bn. Morocco allocated MAD 30bn worth of food and energy subsidies for the 2014 state budget, down from MAD 42bn the year before.

Total spending rose 10.3% y/y at end-April, bolstered by a 50% y/y expansion in capital expenditures as the government seeks to spur economic growth. Spending on subsidies fell 5.5% y/y at end-April in line with the government and the IMF’s requirements to streamline subsidies. But the subsidies’ cut remain marginal as the government fears social unrest, meaning the burden on the budget will likely not be lifted in 2014.


Budget revenue edged down 0.1% y/y in the first four months of the year due to a 23.7% y/y drop in non-fiscal income, the central bank said.

Related Articles

Iraq holds talks with Excelerate Energy on buying first LNG from US

Iraq is in the final stages of negotiating its first-ever purchase of LNG supplies as power outages hamper the Middle East country, Bloomberg reported on June 26. Dallas-headquartered Excelerate ... more

Reformist Kamil al-Tayeb Idris appointed as Sudan’s new Prime Minister

Sudan’s Sovereign Council head, Abdel Fattah al-Burhan, issued a constitutional decree on May 19 appointing Kamil al-Tayeb Idris as the new prime minister, Al Sharq Al Awsat reported. He also ... more

Egypt examines LNG supply offers from Saudi Aramco, UAE’s Adnoc, Algeria’s Sonatrach, and QatarEnergy

Egypt's state-owned gas company EGAS has received several offers to supply liquefied natural gas (LNG) shipments urgently needed for summer, Al Sharq reported on May 18, citing an unnamed government ... more

Dismiss