Budget Deficit Stood at MAD 30.4 Billion at End of August

The situation of expenses and resources of the Treasury (SCRT) at the end of August 2022 shows a budget deficit of MAD 30.4 billion, against MAD43.3 a year earlier, according to the Ministry of Economy and Finance.

This evolution covers an increase in revenues (+MAD 33.5 billion) greater than that of overall expenditure (+MAD 20.6 billion), said the ministry in a document on the situation of the Treasury’s expenses and resources (SCRT) in August 2022.

In detail, revenues recorded, on a net basis of refunds, rebates and tax refunds, an improvement of 21% compared to the end of August 2021 and a realization rate of 73.5% compared to the forecasts of the Finance Act (LF).

For their part, tax revenues have shown a good overall performance, with an increase of 19.8%, thus recording a realization rate of 75.1% and this, despite the increase in refunds, rebates and tax refunds which have covered a total amount of MAD 9.4 billion.

As for non-tax revenues, they amounted to nearly MAD 23.4 billion. Revenues from public institutions and companies reached MAD 7.1 billion, including MAD 4 billion paid by OCP, MAD 2.2 billion by the National Agency of Land Conservation, Cadastre and Cartography (ANCFCC) and MAD505 million by Bank Al-Maghrib. The “other revenues” amounted to MAD 16.3 million, including MAD 10.2 million from innovative financing.

The SCRT also reported an increase in ordinary expenditure of nearly MAD 22 billion (+12.9%) and an implementation rate of 73.5%. This increase compared to the end of August 2021 is mainly due to the rise in compensation expenses (+MAD 15.9 billion) and expenses for goods and services (+MAD 5.1 billion).

The increase in compensation expenses is attributable, in particular, to the rise in the price of butane gas, which reached an average of $801.5/T. These expenses amounted to MAD 28.6 billion, i.e. a realization rate of 84.5% compared to the updated forecast (MAD 33.8 billion).

These expenses include subsidies granted to professionals in the transport sector for an amount of MAD 2.1 billion, as part of the measures decided by the government to cope with the increase in the price of energy products.

The increase in expenditure on goods and services covers an amount of MAD 1.9 billion for “other goods and services” and MAD 3.3 billion for personnel costs.

Interest on debt rose by MAD 940 million to MAD 23.4 million, reflecting an increase in interest on domestic debt (up by MAD 1 million) and a slight decline in interest on foreign debt (down by MAD 61 million).

These changes in ordinary income and expenditure resulted in a positive ordinary balance of MAD 779 million, compared with a negative balance of MAD 10.7 million at the end of August 2021.

With regard to capital expenditure, the document stresses that issues reached MAD 47.2 billion, against MAD 42.3 billion a year earlier, noting that compared to the forecasts of the LF-2022, their realization rate amounted to nearly 60.5%. For their part, the Treasury’s special accounts (CST) showed a surplus balance of nearly MAD 16 billion , against MAD 9.8 billion at the end of August 2021. The resources of the Treasury’s special accounts take into account MAD 6.4 billion corresponding to the proceeds of the social solidarity contribution on profits and income, allocated to the Support Fund for Social Protection and Social Cohesion.

The SCRT is the statistical document that presents, on behalf of the Ministry of the Economy and Finance, the results of the execution of the Finance Act forecasts with a comparison to the achievements of the same period of the previous year.

Whereas the situation produced by the Kingdom’s General Treasury (TGR) is basically accounting in nature, the SCRT captures, as recommended by international standards for public finance statistics, the economic transactions carried out during a budgetary period by describing, in terms of flows, ordinary revenue, ordinary expenditure, investment expenditure, the budget deficit, the financing requirement and the financing mobilized to cover this requirement.