Budget Deficit of MAD 42.6 Bln at the End of July (Ministry)
Rabat - The situation of the Treasury's expenses and resources at the end of July 2021 shows a budget deficit of 42.6 billion dirhams, against a deficit of MAD 42.1 bln for the same period of 2020, according to the Ministry of Economy, Finance and Administration Reform.
This situation should be analyzed taking into account a base effect related to the impact on tax revenues of the sudden cessation of activity in 2020, particularly during the lockdown period, and a surplus of 9 billion dirhams at the end of July 2020 of the Special Fund for the management of the Covid-19 pandemic covering mobilized resources of 33.7 billion dirhams and expenditure of 24.7 billion dirhams, the ministry stresses.
It should also take into account the recovery of economic activity in the first half of 2021, in particular in relation to the good agricultural campaign, the strengthening of domestic demand and the conduct of the immunization campaign in favorable conditions, the relaxation, during the months of June and July 2021, of health restriction measures as well as the increase in international prices of energy products, particularly butane gas.
Therefore, the receipts recorded, on a net basis of refunds, rebates and tax refunds, an increase of nearly 10.3 billion dirhams compared to the end of July 2020 and an achievement rate of 58.2% compared to the forecasts of the appropriation bill.
This situation should be analyzed taking into account a base effect related to the impact on tax revenues of the sudden cessation of activity in 2020, particularly during the lockdown period, and a surplus of 9 billion dirhams at the end of July 2020 of the Special Fund for the management of the Covid-19 pandemic covering mobilized resources of 33.7 billion dirhams and expenditure of 24.7 billion dirhams, the ministry stresses.
It should also take into account the recovery of economic activity in the first half of 2021, in particular in relation to the good agricultural campaign, the strengthening of domestic demand and the conduct of the immunization campaign in favorable conditions, the relaxation, during the months of June and July 2021, of health restriction measures as well as the increase in international prices of energy products, particularly butane gas.
Therefore, the receipts recorded, on a net basis of refunds, rebates and tax refunds, an increase of nearly 10.3 billion dirhams compared to the end of July 2020 and an achievement rate of 58.2% compared to the forecasts of the appropriation bill.