Morocco’s budget deficit is expected to be 6.1% of gross domestic product (GDP) this year, according to forecasts by the High Commission for Planning (HCP).
“Fiscal policy in 2022 should remain oriented in favor of supporting the national economy by maintaining a budget deficit of nearly 6.1% of GDP”, notes the HCP in the note “Provisional economic budget (BEP) 2022” This orientation is combined with an increase in investment expenditure, which should reach 7.2%, and incompressible ordinary expenditure, which should continue its upward trend to represent nearly 21.7% of GDP.
This increase, specifies the HCP, would be carried by the increase in expenditure on the wage bill to 12.1% of GDP and expenditure on other goods and services (5.6% of GDP), noting that the compensation charge should be around 1.6% of GDP, assuming that the average price of butane gas continues to rise.
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