The ordinary revenue of local authorities was up by 6.2% at the end of November 2022 compared to the previous year. They reached 39.6 billion dirhams, according to the monthly bulletin of local finance statistics published by the General Treasury of the Kingdom (TGR).
This increase is explained by “the 7% increase in transferred revenue and 13.7% in revenue managed by local authorities, combined with the 3.3% drop in revenue managed by the State” according to the publication.
The same source indicates that tax revenue increased by 10.1% reaching 31.8 billion dirhams at the end of November 2022 once morest 28.8 billion dirhams in 2021 while noting a drop of 7.1% in non-tax revenue via a total 7.8 billion dirhams in 2022 once morest 8.4 billion dirhams in 2021.
The upward trend in tax revenue can be explained by three factors according to the bulletin.
Firstly, this is due to a 7% increase in transferred resources reaching 24.7 billion dirhams in 2022 once morest 23.1 billion dirhams in 2021. This increase is due to the increase in the share of local authorities in the product of the VAT of 17.2%, the share of the regions in the product of the IS and the IR of 12.5%, the support funds of 40.2% and their share in the product of the tax on insurance contracts by 59.3% as well as the drop in subsidies by 34.8%.
The second cause is a 3.3% decrease in resources managed by the State, which total 7,041 MDH in 2022 once morest 7,282 MDH in 2021. A decrease resulting from the respective reductions in the municipal services tax of 3.9%, the business tax of 2.2% and residence tax of 6.3%.
Finally, the increase in tax revenue is explained by a 13.7% increase in resources managed by local authorities with a total of 7,860 MDH at the end of November 2022 once morest 6,915 MDH in 2021. This increase is due to increases in the fee for the temporary occupation of the municipal public domain of 27.6% and state revenue of 27.3% as well as the reduction in the tax on construction operations by 4.1% and that of the tax on urban land not 6.1% beds.
It should be noted that tax revenue constituted 80.3% of the overall revenue of local authorities at the end of November 2022.
As for the downward trend in non-tax revenue, it would be due, according to the TGR, to the reduction in subsidies by 34.8% reaching 2,975 MDH in 2022 as well as the increase in support funds by 40, 2% (973 MDH), the fee for temporary occupation of the municipal public domain of 27.6% (1032 MDH) and state revenue of 27.3% (834 MDH) compared to the previous year.
The study of the distribution of revenue by type of municipality carried out by the treasury reveals two points. Initially, the revenues of the communes constitute the majority of the overall revenues of the communities with 70.8% once morest 22.3% for the regions and 6.9% for the prefectures and provinces. In addition, transferred resources are inversely proportional to own resources.
Indeed, the resources transferred by the regions amount to 89.9%, those of the prefectures to 88.4%, and those of the communes to 51.2%.
Oussama Maleh (stagiaire)
