Morocco may launch subsidies reform in June
Minister of General Affairs and Governance, Mohamed Najib Boulif said that “Technically, the reform of the subsidies system is quite ready,” according to MAP. ”Once talks are concluded and the political decision is taken, it will be launched,” he added.
Source : https://www.marocafrik.com/english/Morocco-may-lau...
The government will try to lower the state budget deficit to 4.8 percent of gross domestic product in 2013 from an estimated 6.0 percent last year. It is projecting GDP growth of 4.5 percent this year, after 3.4 percent in 2012.
This year the PJD government took the stepof reducing the subsidy on petrol forwhich the price rose 20% and diesel 10%. Reducing subsidies for a population that has grown used to them is a delicate process especially during an economic downturn. The PJD is striving to reduce the deficit and balance its books after having received a US$6.2 billion IMF draw down facility to cushion Morocco from the effects of the eurozone economic recession and the poor harvest due to climatic conditions.At least the agricultural crops for 2013 shoud be better thanks to timely rains.
The government proposes to change the subsidy system for cash payments to the poor. There is some concern
that this may raise inflation. Finance and Economy minister Nizar Baraka said in Parliament that he feared that the subsidy reform could lead to the impoverishment of the middle classes, who generate the countries wealth and help to boost consumer spending.
This year the PJD government took the stepof reducing the subsidy on petrol forwhich the price rose 20% and diesel 10%. Reducing subsidies for a population that has grown used to them is a delicate process especially during an economic downturn. The PJD is striving to reduce the deficit and balance its books after having received a US$6.2 billion IMF draw down facility to cushion Morocco from the effects of the eurozone economic recession and the poor harvest due to climatic conditions.At least the agricultural crops for 2013 shoud be better thanks to timely rains.
The government proposes to change the subsidy system for cash payments to the poor. There is some concern
that this may raise inflation. Finance and Economy minister Nizar Baraka said in Parliament that he feared that the subsidy reform could lead to the impoverishment of the middle classes, who generate the countries wealth and help to boost consumer spending.
Source : https://www.marocafrik.com/english/Morocco-may-lau...