Akhannouch: Morocco is determined to enhance economic dynamism in 2024 fiscal year

Prime Minister Aziz Akhannouch stated that the Moroccan government “is determined to enhance the dynamism recorded by the national economy last year and at the beginning of the current year, during the year 2024” in the circular that marked the beginning of the preparation of the 2024 Finance Bill.

 The Moroccan government hopes to achieve a growth rate of approximately 3.7% in 2024, compared to 3.4% in 2023, in addition to continuing to reduce the budget deficit to 4% in 2024 from the anticipated 4.5% at the end of the current year.

The new growth model and the government program are intended “to advance the country’s development path to a new stage, and open broader horizons of reforms and major projects that Moroccans deserve.”

 The 2024 draft finance law is being developed in a global environment characterized by geopolitical tensions and the succession of crises, both of which have an impact on global economic growth and purchasing power.

Before the end of August, the government plans to control personnel, management, and investment expenses to present a draft finance bill by the timeframes required by the constitution and the law.

Four objectives

For the draft finance law for 2024, the prime minister set four priorities: enhancing the sustainability of public finances; consolidating measures to mitigate circumstantial effects; continuing to build the social state; and implementing structural reforms.

To ensure the creation of an integrated file for the joint nomination with Spain and Portugal to host the FIFA World Cup in 2030, the government is also committed to mobilizing all resources and setting up the necessary circumstances.

The government is counting on achieving the balance between monetary and budgetary policy to lower inflation to a rate similar to 3.4% in 2024 and 2% starting in 2025.

As part of the green generation strategy, which the government will continue to implement through 2024, it also plans to support the development of production and distribution chains for agricultural raw materials and fodder.

This will be done by carrying out the commitments outlined in the 19 contract-programs that were signed at the start of the current year, with funding totaling more than 110 billion MAD, of which 42 billion MAD are allocated for implementation.

The national program for the supply of potable water and irrigation water, for which the financial envelope allocated to it amounts to 143 billion MAD during the period 2020–2027, won an important share. The government emphasized the need to accelerate the download of these components.

The government sectors are also urged to step up their vigilance to implement and expedite the project to link the Sebou and Bouregreg water basins and to continue building dams to improve the capacity of fresh water storage.

The prime minister also emphasized the necessity to quicken programs for unconventional water mobilization, through setting up seawater desalination facilities, increasing the amount of treated wastewater reuse, and improving the availability of drinkable water in rural areas.

A fresh vision based on better targeting of social groups eligible for help led the government to announce the commencement of the family compensation program before the end of 2023.

To finance this initiative, the necessary funds will be raised in compliance with the social protection criteria of Law No. 21.09, by updating a number of current social programs.

The government will continue to encourage private investment which currently only accounts for a third of total investment, by increasing private investment to two-thirds by 2035 and achieving a sort of parity between public investment (50%) and private investment (50%) by 2026.

The government also promised to hasten the “Morocco Offer” project’s launch in the green hydrogen sector, with the intention of appreciating the skills that our nation possesses in plenty and reacting to the plans of international investors in this attractive industry.