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Morocco: Increase in public investment

The total amount of public investment, covering the budgets of the State, Institutions, Public Enterprises (EEP) and Local Authorities (CT), increased by 16.5% between 2011 and 2019, reaching 195 billion dirhams (MMAD), according to the Directorate of Budget, under the Ministry of Economy and Finance.

In a summary of the note on the regional distribution of investment, accompanying the Finance Act 2019, the Management also underlines the continuous increase of budget margins released for the benefit of public investment which went from 135 MMAD in 2009 to 195 MMAD in 2018, an increase of more than 44.4%.

Indeed, the effort of the public investment is considered as “an indispensable lever in the realization of the model of economic and social development of Morocco”, reads in the document put on line by the ministry, adding that “the government has made a major effort in terms of public investment, through the optimization of public revenues and the control of the lifestyle of the state”.

In parallel with this budgetary effort, the government has continued to pay particular attention to accelerating the pace of execution of public investment, while ensuring its regional distribution so as to ensure integrated and balanced development. Kingdom, notes the Management, citing as an example, the rate of implementation of investment appropriations charged to the general budget which has gradually increased over the period from 2013 to 2017, 62.43% to 78.99%, an improvement of almost 17 points.

In particular, this positive trend was essentially achieved following the entry into force of the provisions of the new law of finance for the promotion of public management, in particular the performance approach and the capping of carryovers to 30% of payment appropriations. investment budget, explains the same source.

Thus, the carry-over rate, compared to the appropriations opened, has steadily improved from 84% in 2013 (taking into account the freezing of 15 MMAD of payment appropriations), to 36% in 2017, ie an average annual decrease of 19%, adds one.

In the case of public investments carried out by the EEP, the achievements reached 61,286 MMAD in 2017, with a rate of execution of 60%. As for the projects carried by the CT, they recorded a rate of execution of 97% in 2017 with a budget envelope of 15,55 MMAD, against 91% in 2013 with an envelope of 10,97 MMAD, an increase of 6 points.

Structured around 4 axes, the fourth edition of the note on the regional distribution of the investment that accompanies the Finance Act of the year 2019, is part of the implementation of the new management approach of the public investments.

The first axis is devoted to the analysis of the structure and evolution of public investment, as a strategic and voluntary choice of the State, while the second highlights the role of public investment in service of a territorial and social balance.

Dealing with the emergence of the region as a major player in the development of territories, the third axis aims to improve the socio-economic attractiveness of all regions, through the realization of their regional development programs (PDR ) and the implementation of the integrated urban development plans of several cities.

As for the fourth and last axis of the note, it focuses on the prospects of improving the management of public investment, to increase its effectiveness and its impact at the regional level in a balanced way.

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