Morocco’s 2023 budget to foster well-fare state

Morocco’s 2023 budget to foster well-fare state

The ministerial council chaired by King Mohammed VI has approved a draft budget that aims at fostering the pillars of the welfare state by focusing on the generalization of social protection, upgrading the education system, improving access to social housing and protecting vulnerable groups.

The draft budget expects a growth rate of 4% and a fiscal deficit of 4.5% while inflation is forecast at 2%.

The figures however remain shrouded in uncertainty in light of the impact of geopolitical tensions and climate conditions.

Drought and inflation have both dipped Morocco’s growth forecast for 2022 to less than 1.5% according to the government, the central bank and the planning agency.

The draft budget also assigns particular importance to spurring private investment. The ministerial council approved the appointment of Mohamed Benchaaboun as new director of the Mohammed VI investment fund.

The King has set the target of attracting 550 billion dirhams ($ 50 bln) in investments by 2026 and the creation of 550,000 new jobs.

The new development model, a road map for the next 14 years, has set the goal of increasing the share of the private sector to two-thirds of total investments instead of one third currently.

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