Morocco - Unconstitutionality of budget cuts: Nizar Baraka answers
Lemag: Groups of opposition MPsheld that the government's decision to stop the execution of 15 billion dirhams under the investment budgetwas unconstitutional.
Source : https://www.marocafrik.com/english/Morocco-Unconst...
The Minister of Economy and Finance gave an oral presentation to the Committee on Finance and Economic Development to the House of Representatives to explain the ins and outs of the government's decision to cut the capital budget by the amount of 15 billion dirhams.
"This is to prevent the worsening of the budget deficit," said the Minister of Economy and Finance Nizar Baraka, before MPs.
His paper entitled 'The development of the economic and financial situation', the Istiqlal Minister has stated before the Committee on Finance and Economic Development to the House of Representatives, the results of the implementation of the Finance Act during the first three months of 2013 show a deficit of 16.8 billion dirhams, or about 2% of the Gross Domestic Product (GDP), which means that the budget deficit under the current year would be 8 %, a widening deficit of 1% per year.
In legal terms, argues the Minister, the Government relied on Article 45 of the Organic Law 14-00 amending and supplementing the Organic Law on Finance 7-98 which states that 'the Government may, in fiscal condition to notify the relevant parliamentary committees, freeze some investments if economic and financial circumstances require. "
State of play
On the preliminary results of the implementation of the Finance Act in late March, Baraka stressed that tax revenue fell nearly 2.8 billion dirhams due to falling tax results of some large taxpayers, combined with decline in revenues on foreign trade due to lower imports, including energy, as well as higher registration fees and stamp after the implementation of the measures stipulated by the Finance Act 2012.
For expenses, Nizar Baraka noted that the salary expenditures increased by nearly 1.1 billion dirhams under the weight of measures and development of ordinary payroll and lower compensation expense of approximately 3 , 8 billion dirhams due to the slight decline in the prices of subsidised products on international markets, as well as increased emissions under the investment budget of about 3.6 billion dirhams, because the Finance Act 2012 only came into force in May of the same year.
The minister said that the taking of the decision of the freezing has been driven by the increase in the volume of investment credit of 11 billion dirhams in 2008 to 21 billion dirhams in 2013, and suddenly worsening budget deficit of nearly 0.4% of GDP.
About the process of making this decision, the Minister recalled that the Chief Minister issued a circular calling for giving priority under the current year, expenses and investments transferred to freeze some new capital investments initiated under the same year.
He also recalled that a decree was issued on the gel part of the investments under the year 2013, and the freezing of 15 billion dirhams investment expenditure planned for 2013.
The rate of growth unaffected
Baraka and emphasized that the goal is to accelerate the implementation of public projects while preserving the volume of investments at the same level as in previous years, believing that this decision will have no impact on the growth rate for that expenditures allocated only a negligible proportion of public and private investment
"This is to prevent the worsening of the budget deficit," said the Minister of Economy and Finance Nizar Baraka, before MPs.
His paper entitled 'The development of the economic and financial situation', the Istiqlal Minister has stated before the Committee on Finance and Economic Development to the House of Representatives, the results of the implementation of the Finance Act during the first three months of 2013 show a deficit of 16.8 billion dirhams, or about 2% of the Gross Domestic Product (GDP), which means that the budget deficit under the current year would be 8 %, a widening deficit of 1% per year.
In legal terms, argues the Minister, the Government relied on Article 45 of the Organic Law 14-00 amending and supplementing the Organic Law on Finance 7-98 which states that 'the Government may, in fiscal condition to notify the relevant parliamentary committees, freeze some investments if economic and financial circumstances require. "
State of play
On the preliminary results of the implementation of the Finance Act in late March, Baraka stressed that tax revenue fell nearly 2.8 billion dirhams due to falling tax results of some large taxpayers, combined with decline in revenues on foreign trade due to lower imports, including energy, as well as higher registration fees and stamp after the implementation of the measures stipulated by the Finance Act 2012.
For expenses, Nizar Baraka noted that the salary expenditures increased by nearly 1.1 billion dirhams under the weight of measures and development of ordinary payroll and lower compensation expense of approximately 3 , 8 billion dirhams due to the slight decline in the prices of subsidised products on international markets, as well as increased emissions under the investment budget of about 3.6 billion dirhams, because the Finance Act 2012 only came into force in May of the same year.
The minister said that the taking of the decision of the freezing has been driven by the increase in the volume of investment credit of 11 billion dirhams in 2008 to 21 billion dirhams in 2013, and suddenly worsening budget deficit of nearly 0.4% of GDP.
About the process of making this decision, the Minister recalled that the Chief Minister issued a circular calling for giving priority under the current year, expenses and investments transferred to freeze some new capital investments initiated under the same year.
He also recalled that a decree was issued on the gel part of the investments under the year 2013, and the freezing of 15 billion dirhams investment expenditure planned for 2013.
The rate of growth unaffected
Baraka and emphasized that the goal is to accelerate the implementation of public projects while preserving the volume of investments at the same level as in previous years, believing that this decision will have no impact on the growth rate for that expenditures allocated only a negligible proportion of public and private investment
Source : https://www.marocafrik.com/english/Morocco-Unconst...