The Council of Government held, Wednesday, October 14th, 2015, under the chairmanship of Head of Government, Mr. Abdelilah Benkirane, adopted the finance bill 70-15 for the fiscal year 2016, and the five related draft decrees.
During the early works of the Council, Mr. Mohammed BOUSSAID, Minister of Economy and Finance, gave a presentation on the general guidelines of the proposed Finance Bill 2016.
Mr. BOUSSAID stated that this bill, developed in conformity with the high royal instructions tends to implement the general guidelines adopted by the Council of Ministers and which are structured around four priorities:
- Consolidating the basis for a balanced economic growth continuing to support demand and the encouragement of the offer through, in particular, the stimulation of industrialization, the encouragement of private investment, the support of the business and the acceleration of sector-based plans;
- Strengthening the pillars of an integrated economic development that reduces social and spatial disparities and offer decent work opportunities;
- Accelerating the implementation of regionalization and the rate of major structural reforms;
- The implementation of the reform of the organic budget law and the pursuit of efforts for the gradual recovery of macroeconomic balances.
The Minister of Economy and Finance stressed that this bill also aims at the implementation of the ambitious program announced by His Majesty the King, may God Assist Him, in the throne speech, on the fight against deficits for public services and basic services in rural areas, especially in remote and isolated regions.
This Finance Bill comes in an international context characterized by an improvement in the forecasts of the world economy and promising prospects for the Euro-Mediterranean region, promoting foreign demand, and lower oil prices on international markets.
It also comes after a year marked by a growth rate of 5% and an agricultural crop having reached a record of 115 million quintals as well as under favorable economic indicators arising from a series of major reforms which led to the decline in the deficit of the balance of payments to 2.8% instead of 9% four years ago and that of the trade balance of 20.4% compared to last year.
These data reflect the decline in the budget deficit to 4.3% in 2015 against 7.7% in 2012, the decline in the unemployment rate to 8.7% and the controlling of inflation of 1.8%, as of indicators that will enable our country to continue during the next budget year, major reforms and implement the broad guidelines of the finance bill.
Regarding the quantitative indicators of this bill, it is based on four assumptions: achieving a growth rate of 3%, further reducing the budget deficit to 3.5% and controlling inflation up to 1.7%, as part of an oil price of 61 dollar per barrel.
The figures are established on the basis of expenditure amounting to 388 billion dirhams and revenues should reach 364 billion dirhams.