Morocco’s spending on subsidies halved by April

Morocco’s spending on subsidies of basic consumer goods dropped to 2.2 billion dirhams by April, from 5 billion dirhams the same period last year.

The drop in subsidies bill was mainly ascribed to the 68% decrease in the cost of butane gas as well as sugar prices. Morocco also subsidies flour.

Therefore, it is expected that the budget, which will be reviewed, will cut the 14 billion dollars allocated to the subsidies fund.

The coronavirus pandemic and the confinements related to it across the globe have lowered demand on butane gas to Morocco’s advantage which imports most of its energy needs.

Morocco has however halted the import duty on soft wheat in order to maintain prices at their current level and avoid subsidizing flour.

The subsidies fund was spared from some of its major spending during the outgoing government that halted spending on petrol and diesel, which are now sold according to market demand and offer logic.