Morocco government seeks parliament approval for additional budget funding

The Moroccan government needs to increase its 2024 budget by 14 billion dirhams ($1.4 billion) to meet expenditures linked to subsidizing electricity prices and wage hikes, minister delegate in charge of the budget Fouzi Lekjaa said.

In a presentation at the finance committee in parliament, Lekjaa recalled that the government has approved a decree to request the additional funding to stabilize prices and meet a rise in expenditures due to wage hikes.

The government plans to allocate an additional funding of $400 million to the state electricity and water supplier ONEE and $650 million to back wages of civil servants.

The government also needs to back the flag carrier RAM with $350 million and increase subsidies to drought-stricken farmers.

On the medium term, Morocco expects to cut its fiscal deficit from 4% in 2024 to 3.5% in 2025 and 3% in 2026, despite an increase in spending on social protection, Fouzi Lekjaa said last week.

Increased spending on the public payroll and social protection programs would be funded by a rise in tax revenue, he said.