Opposition raises alarm over debt, investment shortcomings, and agricultural mismanagement

Opposition MPs in the Moroccan House of Representatives have strongly criticized the government’s handling of the investment system, particularly its failure to mobilize the targeted 555 billion dirhams in investments and the lack of regulatory texts to support small and medium-sized enterprises. 

They expressed concerns about the rising external debt, questioning whether Morocco has alternative margins for sustaining public finances, and called for the acceleration of tax reform implementation.

During a general session discussing a report by Zineb El Adaoui, President of the Court of Auditors, opposition members stressed that the government must prioritize the country’s limited water resources for food security and assess the effectiveness of agricultural subsidies, which they claimed have had little impact. 

They further advocated for the creation of a financial highway to ensure the sustainability of public finances in light of various challenges.

Abdelkader Taher, a member of the Socialist Union opposition bloc, stated that the report highlighted the fragile assumptions upon which the government’s fiscal and investment strategies were based. 

He said the government had not met the royal objectives related to investment mobilization or job creation, and criticized the government for not issuing the necessary regulatory texts for the investment charter, noting  that only 38% of investment responsibilities had been decentralized by October 2023.

Fatima Yassine, from the Haraki bloc, pointed out that despite positive aspects in the national economy, the government has failed to meet its growth, inflation, and agricultural production targets. 

She expressed concern about the 10.8% rise in external debt in 2023 and questioned the sustainability of public finances amid increasing financial pressures.

 Yassine proposed reducing excess expenditures and streamlining state subsidies to public institutions, which amounted to over 65 billion dirhams in 2023, with minimal returns.

Nadia Thami, from the Progressive Socialist Party, echoed concerns about Morocco’s water crisis, urging the government to prioritize water conservation and curb wasteful practices like water theft and excessive water-intensive crops. 

The Justice and Development Party’s parliamentary group criticized the government’s handling of social protection funding, highlighting the risks of relying on external debt to finance social welfare projects. 

They also called for an urgent evaluation of agricultural subsidies, which they argued were ineffective in addressing food security and reducing inflation.

Fatima Al Tamani, from the Federation of the Left Democrats, questioned the effectiveness of public spending and the government’s commitment to accountability, noting that only 20% of the Court of Auditors’ recommendations had been implemented.

Nabila Mounib from the Unified Socialist Party emphasized the need for a national anti-corruption strategy, pointing out the structural nature of corruption and the importance of aligning legal frameworks with anti-corruption efforts.