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Moroccan PM Calls for Diversifying Resources

Moroccan PM Calls for Diversifying Resources

Monday, 12 August, 2019 - 12:00
Moroccan Prime Minister Saadeddine Othmani gives a speech in Rabat, March 18, 2017. REUTERS/Stringer
Casablanca - Lahcen Mokena
Moroccan Prime Minister Saadeddine Othmani has called on the government to control expenditures and resort to innovative ways to fund investments in an attempt to ease financial pressures.

In a circular to cabinet ministers, Othmani said the government will suffer from an additional financial burden of around MAD28.5 billion (USD3 billion) due to the implementation of a deal struck with syndicates, which will cost MAD5.3 billion (USD560 million) in 2020.

The minister stressed the importance of intensifying efforts on improving taxation and non-taxation resources.

Othmani emphasized the necessity of carrying out important reforms including the comprehensive reform of retirement regulations and the gradual reform of compensation, along with activating mechanisms of social support.

He placed the country’s financial and economic well being on top of the government’s priorities in drafting the state budget for 2020.

Othmani noted that reinforcing stability and economic development is full of risks, despite huge efforts exerted by Morocco in the past years.

The prime minister urged reconsidering the way investment credits are managed by giving priority to projects backed by international donors and funds, and signed in the presence of King Mohammed VI.

Othmani called for enhancing public investments by adopting a new approach which will be activated gradually starting next year, and which aims at implementing more socially and economically lucrative projects, and to enhance implementation mechanisms, in addition to relying on innovative funding procedures by activating the new legal framework for public-private sector partnerships.

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