[Morocco] Budget increase needed for wage hikes

[Morocco] Budget increase needed for wage hikes
07 Jun 2024

The Moroccan government has announced that it will need to increase its 2024 budget by 14 billion dirhams ($1.4 billion) to meet expenditures linked to subsidising electricity prices and wage hikes, The North Africa Post reports.

In a presentation at the finance committee in parliament, Fouzi Lekjaa - the minister delegate in charge of the budget - stated that the government had approved a decree to request additional funding to stabilise prices and meet a rise in expenditures due to wage hikes.

The government reportedly intends to allocate a further $400 million to the state electricity and water supplier ONEE and $650 million to back the civil servants’ wages.

At the end of May the minister delegate said that, in the medium term, Morocco expects to cut its fiscal deficit from 4 per cent in 2024 to 3.5 per cent in 2025 and 3 per cent in 2026, despite an increase in spending on social protection.

A rise in tax revenue would be funded by increased spending on the public payroll and social protection programs, he added.


Source: The North Africa Post

The Moroccan government has announced that it will need to increase its 2024 budget by 14 billion dirhams ($1.4 billion) to meet expenditures linked to subsidising electricity prices and wage hikes, The North Africa Post reports.

In a presentation at the finance committee in parliament, Fouzi Lekjaa - the minister delegate in charge of the budget - stated that the government had approved a decree to request additional funding to stabilise prices and meet a rise in expenditures due to wage hikes.

The government reportedly intends to allocate a further $400 million to the state electricity and water supplier ONEE and $650 million to back the civil servants’ wages.

At the end of May the minister delegate said that, in the medium term, Morocco expects to cut its fiscal deficit from 4 per cent in 2024 to 3.5 per cent in 2025 and 3 per cent in 2026, despite an increase in spending on social protection.

A rise in tax revenue would be funded by increased spending on the public payroll and social protection programs, he added.


Source: The North Africa Post

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