2020 Finance Bill Execution: Revenues Down MAD 13 Bln by End of August

2020 Finance Bill Execution: Revenues Down MAD 13 Bln by End of August - Minister

28 September 2020 Printable Version

Rabat - The implementation of the 2020 Finance Bill has shown a MAD 13.8 billion decline in revenues by the end of August, which is equivalent to an 8.8% drop compared to the same time last year, said Monday in Rabat, Minister of Economy, Finance and Administration Reform Mohamed Benchaâboun.

As for tax revenues, they have declined by MAD 11.5 billion (- 8.3%), Benchaâboun said in a presentation before the Finance and Economic Development Committee at the House of Representatives.

Income tax fell by MAD 1.9 billion and value-added tax dropped MAD 3.7 billion while consumption tax and registration fees declined by MAD 2.5 billion and 2.4 billion respectively, the minister added.

Benchaâboun also noted that expenditures increased by MAD 9 billion, which is equivalent to 5.8%, adding that issuance fees declined by MAD 40 billion while the completion rate reached 56.4%. Taking into account these developments, the budget deficit has worsened by MAD 15.8 Bln, the minister said.

Excluding the Special Fund for the management of the pandemic of the novel coronavirus (covid-19), the deficit stands at MAD 55.5 billion (+25%), he explained, stressing that the government will revise its economic growth forecasts to -5.8% by the end of 2020.

Benchaâboun also pointed out that the value-added of tourism has dropped by 50%, while that of transport and trade fell by 12% and 9.1% respectively.

On financing the economy, the minister reported a MAD 29 billion increase in bank credits during the first seven months of 2020, as well as a decrease in the interest rate to 4.58% on average.

Regarding inflation, Benchaâboun said it should reach 0.6% by the end of this year against 0.2% in 2019, while unemployment would exceed 13% by the end of 2020.