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.

Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

UAE investor to develop $500mn agri-food group in Romania

The Al Dahra Group of the United Arab Emirates (UAE) wants to purchase nearly 60,000 hectares of agricultural land along the Danube River, develop a logistics company including water and road ... more

UAE to buy major stakes in Kazakh special economic zones

The United Arab Emirates’ (UAE’s) global port operator Dubai Ports World on March 24 signed two framework agreements to acquire stakes in Kazakhstan’s two Special Economic ... more

Survival of Iran nuclear deal appears far less likely under US Secretary of State Mike Pompeo

The odds on the Trump administration attempting to kill the Iran nuclear deal substantially shortened on March 13 with the firing-by-tweet of US Secretary of State Rex Tillerson and his replacement ... more

Most Read

  1. Sberbank oil analyst Alex Fak fired for being openly critical of state-owned gas giant Gazprom
    2 days ago
  2. Gazprom insider pipeline deals for Putin cronies worth $93bn, analysts claim
    3 days ago
  3. “God help Turkey” says brokerage as lira’s descent accelerates
    3 days ago
  4. Turkish lira takes its daily beating, this time after a damning report from Fitch
    2 days ago
  5. Macedonian PM urges citizens to accept Ilinden Macedonia as new country name
    4 days ago
  1. BRICKS & MORTAR: Infrastructure investments create new real estate hubs in Bucharest
    1 month ago
  2. Sberbank oil analyst Alex Fak fired for being openly critical of state-owned gas giant Gazprom
    2 days ago
  3. COMMENT: Armenia is surrounded by enemies. It needs Russia for practical survival
    24 days ago
  4. Gazprom insider pipeline deals for Putin cronies worth $93bn, analysts claim
    3 days ago
  5. MOSCOW BLOG: Russio delenda est
    27 days ago

Selected articles from our premium news/views wire IntelliNews Pro

Login to IntelliNews Pro
Get IntelliNews Pro

Reports

Dismiss