Moroccan government to inject additional $1.4 bln in 2025 budget

The Moroccan government is seeking parliament approval to inject an additional 13 billion dirhams, or 1.4 billion dollars, in the 2025 budget to support key state institutions, including water and electricity utility ONEE.

Speaking to members of parliament, minister in charge of the budget Fouzi Lekjaa said the additional funds were needed to help ONEE keep water and electricity tariffs stable.

The government will earmark 4 billion dirhams to ONEE to help meet the goals of its development plan.

Lekjaa said the new budget was designed to boost the purchasing power of citizens, as part of other measures including public payroll wage hikes.

As part of the budget amendment, 5,5 billion dirhams will be injected into other state institutions.

The new budget reform will not impact the fiscal deficit, he said citing that the funds are a result of higher tax revenue.

Tax revenue increased to 17.4 billion dirhams in the first three months this year, up 21.5% compared with the same period last year, he said.

Despite higher spending, more tax revenue would help Morocco cut the fiscal deficit to 3.2% in 2025, from 3.9% in 2024, he said.