Govt. Council Approves 2021 Finance Bill and Three Accompanying Draft Decrees

The government Council, convened under the chairmanship of head of government, Saad Dine El Otmani, on Friday approved the 2021 Finance Bill and three accompanying decrees.

During the meeting, minister of Economy, Finance and Administration Reform presented the developments that have marked the national and international context, following the spread of the Covid-19 pandemic, as well as the measures taken to deal with it, which reflects the implementation of the High Royal Guidelines contained in the Speeches of His Majesty King Mohammed VI, said minister of National Education, Vocational Training, Higher Education and Scientific Research, government spokesman, Saaid Amzazi in a statement read at a press briefing at the end of the government Council.

In this respect, he stressed that the main orientations retained in the 2021 Finance Bill have identified job creation, supporting national companies, generalizing social coverage and reforming Public Entities and Enterprises (EEP) as priorities, which reflects a strong commitment for a promising and inclusive recovery for the post-Covid-19 period, adding that these orientations are based on three axes.

The first axis relates to the acceleration of the launch of a national economy recovery plan through an exceptional financial effort which emphasizes on jobs protection, supporting corporate treasury through guarantee mechanisms in favor of Very Small and Medium Enterprises (VSMEs) and SMEs, the minister said.

In this context, the minister added that a “pact for economic recovery and employment” was concluded between the State and the private sector to implement a comprehensive and integrated economic recovery plan, stressing that program contracts have also been signed for the recovery of the tourism, events and catering sectors as well as companies operating in amusement parks and playgrounds.

He also highlighted the creation of a Special Allocation Account, to which His Majesty the King has given the name of “Mohammed VI Fund for Investment”, which will be endowed with legal personality, and whose mission will revolve around supporting production activities and financing major public and private investment projects.

Public investment has also been strengthened to reach a total amount of DH 230 billion, 45 million of which will be mobilized under the Mohammed VI Fund for Investment, the minister explained.

The second axis relates to the achieving a global basic medical coverage over a period of two years (2021-2022), the minister added, noting that this project will be accompanied by the amendment of the legal and regulatory framework governing Compulsory Health Insurance, namely Law no. 65-00 and Law no. 98-15.

It also touches on the rehabilitation and upgrading of hospital structures, the simplification of the tax system for professionals with limited income through a “Unified Professional Contribution”, in addition to the creation of a social solidarity contribution, which will generate about DH 5 million in revenues that will be allocated to the “Support Fund for Social Protection and Social Cohesion.”

The third axis, according to the minister, relates to strengthening the foundations of the State and optimizing its operation through the launch of an EEP reform to make their missions consistent and enhance their economic and social efficiency.

At the end of his presentation, the Minister said that through the implementation of 2021 Finance bill, economic growth should reach 4.8% in 2021.

Given the efforts to be made in terms of rationalizing spending and the measures taken to provide additional resources, the treasury deficit will be reduced to 6.5% of GDP against 7.5% in 2020, he said.

The minister also noted that this project includes economic and social measures to strengthen the confidence and optimism of economic and social actors and all citizens, emphasizing the need for increased vigilance to effectively deal with the impact of the Covid-19 health crisis.

The Government Council has also examined and approved three draft decrees accompanying the 2021 Finance bill. These decrees touch on the delegation of powers to the Minister of Economy, Finance and Administrative Reform in the areas of internal borrowing and the use of other financial instruments under the draft decree No. 2.20.723; foreign financing (Draft decree no. 2.20.724); and the conclusion of loan contracts for the repayment of external debt and agreements to guarantee interest and exchange rate risks (draft decree no. 2.20.725).