2024-09-15 13:24:35
The government, within the framework of the three-year budgetary programming (PBT) 2025-2027, has set itself the objective of reducing the budget deficit to 3.5% of the gross domestic product (GDP) in 2025 and to 3% in 2026 and 2027, according to the three-year budget execution and macroeconomic framework report relating to next year’s draft finance law (PLF). “The government is committed to continuing the gradual reduction of the budget deficit in order to ensure a balance between the sustainability of the implementation of reforms and the strengthening of budgetary margins, both in terms of revenue and expenditure,” indicates this report published on the website of the Ministry of Economy and Finance.
This commitment, continues the same source, is reflected in a series of programmed actions relating in particular to the activation of several levers in order to free up budgetary margins.
These are “the mobilization of tax revenues”, “the mobilization of alternative financing mechanisms”, “the review of the expenditure strategy and the adjustment of its programming according to medium-term priorities”, “the improvement of the efficiency of public investment”, “the continuation of the reform of public establishments and enterprises” and “the continuation of the Treasury debt management strategy”.
Also, the commitment of the Executive is reflected in the strengthening of the governance of public finance management through the reform of the organic law relating to the finance law. In this regard, it is a question of consolidating the financial principles and rules and introducing a budgetary rule guaranteeing the sustainability of the debt in the medium term.
Since its implementation in 2016, Organic Law No. 130-13 on the Finance Law has structured the legal framework for public finances by adopting a pragmatic approach, which takes into account the capacities of administrations and ministries to supervise public finances. This law aims to improve efficiency and transparency in the management of public funds, while adapting to the national context on the constitutional, institutional and administrative levels.
Among the key provisions of this law is the PBT, institutionalized since January 1, 2019. This system applies to both the budgets of ministries and those of public establishments and enterprises (EEP) benefiting from allocated revenue or subsidies from the State.
The PBT allows for programming over a rolling three-year horizon, updated annually in order to adapt it to changes in the country’s financial, economic and social situation. This tool aims to place public finance management in a multi-year perspective in order to guarantee budgetary sustainability, increase the accountability of managers through better predictability and improve transparency in public management.
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– What strategies is the Moroccan government implementing to achieve its budget deficit reduction targets for 2025-2027?
Table of Contents
Reduction of Budget Deficit: Government Sets Ambitious Targets for 2025-2027
The Moroccan government has announced its commitment to reduce the budget deficit to 3.5% of the Gross Domestic Product (GDP) in 2025, 3% in 2026, and 3% in 2027, as part of its three-year budgetary programming (PBT) for 2025-2027. This goal is outlined in the three-year budget execution and macroeconomic framework report related to next year’s draft finance law (PLF).
Gradual Reduction of Budget Deficit
The government’s objective is to ensure a balance between the sustainability of reform implementation and the strengthening of budgetary margins, both in terms of revenue and expenditure. This commitment is reflected in a series of programmed actions aimed at freeing up budgetary margins. These actions include:
Mobilization of tax revenues
Mobilization of alternative financing mechanisms
Review of the expenditure strategy and adjustment of its programming according to medium-term priorities
Improvement of the efficiency of public investment
Continuation of the reform of public establishments and enterprises
Continuation of the Treasury debt management strategy
Strengthening Governance of Public Finance Management
The government’s commitment also involves strengthening the governance of public finance management through the reform of the organic law relating to the finance law. This reform aims to consolidate financial principles and rules, introducing a budgetary rule guaranteeing the sustainability of debt in the medium term.
Organic Law No. 130-13 on the Finance Law
Since its implementation in 2016, Organic Law No. 130-13 on the Finance Law has structured the legal framework for public finances, adopting a pragmatic approach that takes into account the capacities of administrations and ministries to supervise public finances. This law aims to improve efficiency and transparency in the management of public funds, while adapting to the national context on constitutional, institutional, and administrative levels.
Three-Year Budgetary Programming (PBT)
One of the key provisions of this law is the PBT, institutionalized since January 1, 2019. This system applies to both the central government and local authorities, providing a multi-year framework for budget planning and execution. The PBT enables the government to better manage public finances, ensure transparency, and promote accountability.
Benefits of Reducing Budget Deficit
Reducing the budget deficit is crucial for Morocco‘s economic stability and growth. A lower budget deficit will:
Improve the country’s credit rating and reduce borrowing costs
Increase confidence in the economy and attract foreign investment
Reduce the risk of inflation and maintain price stability
Provide more resources for priority sectors such as education, healthcare, and infrastructure development
Conclusion
The Moroccan government’s commitment to reducing the budget deficit is a crucial step towards ensuring the country’s economic stability and growth. The implementation of the PBT and the reform of the organic law relating to the finance law will provide a solid foundation for achieving this goal. By strengthening governance and improving budgetary management, Morocco can create a more favorable business environment, attract investment, and promote sustainable development.
Keywords: budget deficit, Gross Domestic Product (GDP), three-year budgetary programming (PBT), finance law, public finance management, governance, economic stability, growth, Morocco.
What strategies is the Moroccan government implementing to achieve its budget deficit reduction targets for 2025-2027?
Reduction of Budget Deficit: Moroccan Government Sets Ambitious Targets for 2025-2027
The Moroccan government has announced its commitment to reduce the budget deficit to 3.5% of the Gross Domestic Product (GDP) in 2025, 3% in 2026, and 3% in 2027, as part of its three-year budgetary programming (PBT) for 2025-2027. This goal is outlined in the three-year budget execution and macroeconomic framework report related to next year’s draft finance law (PLF).
Gradual Reduction of Budget Deficit
The government’s objective is to ensure a balance between the sustainability of reform implementation and the strengthening of budgetary margins, both in terms of revenue and expenditure. This commitment is reflected in a series of programmed actions aimed at freeing up budgetary margins. These actions include:
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