The governance of public finances is more relevant than ever, the inflationary context and the geopolitical crisis having greatly unbalanced the mode of governance. Thus, the decision-making sphere was at the heart of the debate during the work of the 15th edition of the International Colloquium on Public Finances, organized under the theme “What model of governance of public finances in a world of multiple crises”? Overview with Noureddine Bensouda, Treasurer General of the Kingdom.
More than ever at the center of debates on development policies, public finance – a fundamental lever available to governments to achieve their public policy objectives – was the subject of the international symposium on public finance.
It was under the theme “What model of public finance governance in a world of multiple crises?” that the work of this 15th edition took place, organized on the initiative of the Ministry of Economy and Finance and of the Association for the International Foundation of Public Finances (FONDAFIP), with the support of the French Review of Public Finances (RFFP).
Transparency, a sine qua non
Transparency in public finances is essential, as it helps to increase the credibility of the authorities. It is, it is in any case, the opinion of the general treasurer of the Kingdom. During an interview with Inspirations Éco, Noureddine Bensouda insisted on the need for transparency in public accounts. ”Among the institutions that carry out publications, we cite the General Treasury which publishes the bulletin of statistics of the public finances of the State, as well as that of the statistics of local finances.
This makes it possible to understand how budgets are executed at the level of regions, municipalities, and local authorities in general”. And to note that ”this regular, sincere and faithful publication allows everyone to see which budgets are allocated by category of expenditure, namely investment and operating expenditure, as well as any room for manoeuvre. Bensouda would like to note that the reform that was carried out by the Ministry of the Interior goes in the direction of strengthening human capital, at the local and regional level.
The double effect of the pandemic and the war in Ukraine might constitute an anomaly in the development of the accounting reform. For more clarification on the issue, the Treasurer General explains that ”the evolution we have had, like what is happening at the international level, is reflected in budget accounting, which is a revenue-expenditure ”, while recalling that Morocco has introduced, by organic law, general accounting.
”This accounting, both at the level of the State and of local authorities, makes it possible to assess the situation of the heritage”, he explains, and to add that ”it also makes it possible to anticipate the risks future for public finances, in the broad sense of the term.
Bensouda means by this the finances of the State, communities, public companies, as well as social finances which concern the social protection funds. ”This consolidated vision makes it possible to know the situation of the state of public finances in general”, he indicates. Referring to the subject of the 2023 Finance Bill, our interlocutor believes that the content of the PLF is in line with the aim of giving visibility to economic operators.
This principle of annual programming has been implemented since the introduction of the organic finance law a few years ago. “This year in particular, we have more visibility, both for expenditure and for revenue,” reveals the general treasurer, explaining that on the tax side, we have visibility that extends until 2026. He cites, as an example, corporation tax: ”we see the rates that will be applied. Ditto for income tax.
The opinion of civil society must be taken into account
Still according to Bensouda, two ideas should preside over the reform of public finances. This involves entrusting the design and implementation of reforms to qualified skills, with a strategic vision and who master the economic, legal, technical and operational aspects of the subject to be reformed. It is also necessary to ensure that the implementation of public policies can take into account the opinions and opinions of partners, institutions, academics and civil society actors, even if their opinions and opinions are different from those of the managers.
Approached by the Eco Inspirations team, Marie-christine Esclassan, professor at the University of Paris 1 Panthéon-Sorbonne, secretary general of Fondafip, and director of the Revue française de finances publiques, believes that “this year’s theme has was chosen taking into account the increasing difficulties faced by all countries. It is imperative for States to react and seek solutions. According to her, they need to set priorities and reflect on their decision-making processes. There needs to be more consultation between the legislature and the executive. It also insists on the fact that the citizen must be informed.
It is imperative to succeed in the reform of the tax system
Unable to attend the event, Nadia Fettah Alaoui, Minister of Economy and Finance, said in a speech read on her behalf by Noureddine Bensouda that the crises facing the world , namely the Covid and the war in Ukraine, have had a global impact, first on the commodity market, but also on the productive sectors and international trade.
As a result, they fueled global inflation which, combined with weak growth, forced advanced countries to implement even more restrictive monetary policies, and tightened financing conditions for emerging and developing countries. The Minister added that in terms of revenue, it is becoming necessary to succeed in the reform of the tax system for a tax system that is fundamentally oriented towards the future, and which fully integrates globalization.
For Driss Benhima, former CEO of RAM, former minister and former wali, there is no doubt that the new decision-making process in public finance should be put in place by reconciling between the powers of central institutions and the powers delegates to their regional representatives as well as the programs of the regional councils. And to note that the territorial decision-making sphere depends on the role devolved to the latter, advocating the strengthening of the powers of the regional council, which should become the best documented connoisseur of regional realities, all sectors combined.
Kenza Aziouzi / ECO Inspirations