On Thursday, October 20th, 2021, in Rabat, Nadia Fettah Alaoui, Minister of Economy and Finance, presented the 2023 Draft Finance Bill during a joint plenary session between the two chambers of Parliament under the chairmanship of Mr. Rachid Talbi Alami and Mr. Enaam Mayara.
The Government seeks to achieve an estimated growth rate of 4% in the fiscal year 2023, to limit inflation to 2%, and to achieve a budget deficit of 4.5% of rough domestic output.
During her speech, the minister of Economy and Finance affirmed that the preparation of the 2023 Draft Finance Bill comes in an unsteady international context and the resulting inflation and disruptions in the production chains.
In light of this context and through this finance bill, the Government is gradually restoring macro-economic balances as it seeks to achieve an estimated growth rate of 4%, and that is based on government priorities, along with the national and international circumstantial data, as well as hypotheses that determine the agricultural grain crop in about 75 million quintals and the average price of Bhutan gas in 800 dollars per ton.
Among its assumptions, the Government also calls up a rise in external demand (outside of phosphate and its derivatives) of only 2.5%.
The general directions of the 2023 Finance Bill, presented by Minister of Economy and Finance Nadia Fettah Alaoui this evening, are also based on four main pillars.
Firstly the consolidation of the social foundations of the state as it is the most prominent title of this finance bill project. This consolidation will come through the completion of social protection workshops, in parallel with the qualification of the health supply, as well as the reform of the educational system and support of the purchasing power of citizens.
Secondly, revitalizing the national economy through investment support through an investment charter, which King Mohammed VI called upon, is expected to mobilize 550 billion dirhams of investments and create 500,000 job positions by 2026.
Moreover, supporting investment according to a perspective that coincides with strengthening Morocco’s attractiveness to investments, to preserve and develop the utilization of resources, mainly water resources, strengthening the conditions for creating wealth on the one hand, and producing job opportunities, reducing disparities, as well as ensuring a decent living for citizens on the other hand.
It is thirdly, mobilizing the financial margins necessary to pursue reforms while ensuring that the sovereignty of the national decision is protected by maintaining macroeconomic and financial balances.
Finally, restoring financial margins in order to ensure the sustainability of reforms.
While introducing the outline of the 2023 Finance Bill between the two chambers of Parliament, the Minister of Economy and Finance Nadia Fettah Alaoui revealed the significant highlights of the Financial Bill for the next fiscal year 2023:
Allocation of a lump sum for the year 2023 of approximately 600.4 billion dirhams compared to 520.2 billion dirhams in 2022, in other words, an increase of 15.42%.
Limitation on the number of resources expected at 536.4 billion dirhams in 2023, compared to 461.1 billion dirhams in 2022, an increase of 16.32%.
Minister Nadia Fettah Alaoui also highlighted that the general budget balance, excluding the proceeds of assumptions and consumption of medium and long-term public debt, is estimated at 114.8 billion dirhams compared to 103.3 billion dirhams in 2022.
General budget expenditure is divided into 271.1 billion dirhams for management expenditure and 106.27 billion dirhams for investment expenditure.
The total regular resources of the general budget for 2023 amount to 294.7 billion dirhams, compared to 255.2 billion dirhams for 2022, an increase of 15.47%.
Public investment is expected to reach 300 billion dirhams in 2023, up from 245 billion dirhams in the fiscal year 2022.
The necessary funds for distributing compulsory sickness insurance have been planned with an estimated financial cover of 9.5 billion dirhams.
The Ministry of Health’s budget was increased to 28.12 billion dirhams, compared to 23.54 billion dirhams allocated for 2022, an increase of 4.58 billion dirhams, an increase of 19.5%.
Regarding education, The budget allocated to the sector in 2023 will show an increase of 6.5 billion dirhams compared to 2022 to an estimated financial cover of 68.95 billion dirhams.
In addition, the 2023 Finance Bill allocated a total of 25,98 billion dirhams to cover the cost of the clearing fund to support the prices of butane gas, sugar, and soft wheat flour.
Moreover, the number of financial positions proposed for the establishment has been determined at 28,212 positions, among which 27,662 positions are for ministries and institutions. In comparison, 550 positions are assigned by the Head of Government to them, compared to 26,860 financial posts allocated by the 2022’s budget.