The schedule of meetings of the three-year budget programming commissions has been established. Discussions between the Ministry of Finance and the departments and certain institutions will start on April 11 and should end on May 12. This is at least what emerges from the circular that the Head of Government has sent to the ministers to prepare their proposals for the three-year budget programming, from 2023 to 2025. A precise agenda is attached to that document. This is not the first time that the Ministry of Finance has used this practice. It started it in 2018, in accordance with the requirements of the new Organic Law on Finance. This shows that the preparation of the draft Appropriations Bill starts from the beginning of the year instead of waiting until June as in the past. The novelty lies in the introduction of the multi-year component.
• Making the Mohammed VI Fund for Investment operational
At the national level, increasing the pace of growth over the next five years is at the top of the government’s commitments. This translates into the implementation of a national and regional program to support startups in emerging sectors and encourage entrepreneurial initiative. The goal is also to speed up structural reforms of the national economy, the first goal being to make operational the Mohammed VI Fund for Investment, seen as a lever for promoting production activities, the support, and the funding of various investment projects.
• Three-year programming at the heart of the draft Appropriations Bill guidelines: After these preparatory stages, it is this three-year programming that will be presented to the Government Council and to Parliament in July. Indeed, before the Finance Committee of the House of Representatives and of the House of Councilors, the Minister makes a presentation on the implementation of the current Appropriations Bill, the economic and financial situation, and presents the budgetary programming for the next three years to come.
• The administration must tighten its belt
The circular recommends rationalizing the expenditures related to the functioning of the administration. It is a matter of reducing expenditures related to the rental of cars, administrative offices, their equipment, and transportation inside and outside the country. In addition, there is a reduction in the costs of accommodation, hospitality, organization of festivities, congresses, and conferences. The same applies to expenditures related to the vehicle fleet. As far as studies are concerned, the calls for tender will be subject to prior authorizations, in accordance with the circular of last February 15. The conduct of studies will have to be reinforced by the administration’s experts and executives.
• Three principles for the transformation of the national economy: From the economic standpoint, the government has developed a roadmap to address the effects of the pandemic, providing support to the transformation of the national economy to create job opportunities. This roadmap is based on three principles aimed at consolidating employment as a main axis of all public policies in the economic field. To that is added the strengthening of the national sovereignty in terms of products and strategic services. The same applies to the national production which must be strengthened at the local and international level, while protecting it from unfair competition.
The forecasts for the world economy
The effects of the pandemic and the international context constitute a limitation to the prospects of the world economy. Compared to 2021, global growth will experience a slowdown in 2022 and 2023, according to the World Bank who expects a growth rate of 4.1% in 2022, impacted by the persistence of the pandemic, reduced financial support, and disruption of the supply chain. The IMF expects growth of 4.4% in 2022 and 3.8% in 2023. The Eurozone will experience an average growth of 3.9% after the 5.2% posted in 2021. It should be noted the Morocco’s essential partners will post important rates, like 3.5% for example in France after 6.7% in 2021, and 5.8% in Spain after 4.9%. According to forecasts, the prices of most energy products will remain high during this year, with the persistence of supply-side constraints.
Mohamed CHAOUI
