Finance bill project expects economic growth of 3.2% by 2022

The draft Finance bill expects economic growth of 3.2% by 2022, according to the Minister of Economy and Finance, Nadia Fattah Alawi’s presentation in parliament on Monday.

The Minister of Economy announced the main points of the 2022 draft Finance Bill during the joint session of the two chambers of Parliament.

The projected growth rate takes into consideration the recovery of the world economy, mainly in the eurozone, and on the assumption of a cereal harvest of 80 million quintals (Mqx) and an average price of butane gas of 450 USD/tonne.

Additionally, tax resources will have to increase by MAD27 billion and innovative financing will have to generate MAD12 billion, while privatization revenues will have to mobilize MAD8 billion in terms of the state budget.

The finance bill projects a budget deficit of 5.9%, decreasing compared to 6.2% recorded during the 2021 finance law.

As for the job market, the finance bill project aims to create 50,000 new job opportunities in two years from 2022, with an allocated budget of MAD2.25 billion.

The finance bill aims to relaunch the Al Forssa program, aiming to grant 50,000 loans in 2022 with an overall budget estimated at MAD 1.25 billion.

The draft finance bill proposes as well to lower the corporate tax to 27% instead of 28% for industrial companies whose profits are less than MAD100 million. The minimum contribution rate will have to move from 0.5% to 0.45%.

The 2022 finance bill will provide MAD9 billion additional funds for the health and education sectors, including MAD5 billion to be allocated to upgrading hospitals and training centers as well as universities as a priority.

The Minister of Economy and Finance’s finance bill plans to allocate an annual budget of MAD500 million to associations working in the field of disability starting 2022 as well as an amount of MAD250 million to be allocated to support nurseries.