The Council of Government adopts Amended 2020 Finance Bill : 08/07/2020

The Council of Government adopts Amended 2020 Finance Bill

The Government Council convened, Tuesday, July 7th, 2020, under the chairmanship of the Head of Government, Saad Dine EL OTMANI, adopted the Amended Finance Bill (PLFR) No. 35.20 for the year 2020.

The bill was adopted during this meeting after presentation of its general orientations in accordance with the provisions of article 49 of the Constitution during the Council of Ministers chaired on Monday by HM King Mohammed VI at the Royal Palace in Rabat, said Minister of National Education, Vocational Training, Higher Education and Scientific Research, Government Spokesperson, Saaid Amzazi in a statement read at a press briefing at the end of the Council of Government meeting.

The text was approved after discussion of the presentation made by the Minister of Economy, Finance and Administration Reform, Mohamed BENCHAABOUN, who touched upon the national and international contexts marked in particular by the Covid-19 pandemic, which required recourse to the first amended finance bill under the organic law relating to the finance law, noted Amzazi, adding that the presentation highlighted the pillars of the general orientations of the PLFR, namely the support of the progressive recovery of economic activity, the preservation of jobs, and the acceleration of administrative reforms.

Regarding the support of the gradual restart of economic activity, the bill insists on the implementation, under sectoral conventions, of measures taking into consideration the specificities of every sector, in relation to the magnitude of the impacts of the crisis and the time needed to relaunch the economy, he explained, noting that five billion dirhams will be earmarked to support the implementation of guarantee mechanisms for the benefit of all segments of enterprises, including public ones.

Advantageous conditions will be applied through a maximum interest rate of 3.5%, and a reimbursement period of seven years, with a two-year grace period and a state guarantee varying between 80% and 90% and up to 95% for very small enterprises, noted the Government Spokesperson, adding that the Central Guarantee Fund will also undergo institutional reform, through the amendment and adaptation of the law governing the Fund by adopting the best international practices, optimization of governance and the modernization of financial management.

He further indicated that an additional MAD 15 billion will be allocated for public investments to reach MAD 86 billion, in order to accelerate the revitalization of the national economy.

Regarding the preservation of employment, it is a matter of continuing to provide social and economic support to the sectors in difficulty, in accordance with the Royal guidelines, the same source stressed.

Mr. Amzazi also emphasized the need to activate special support for different sectors, under a contractual framework, with the concerned economic stakeholders, by facilitating support for economic resumption, allowing more than 80% of employees registered in the National Social Security Fund (CNSS) to keep their jobs, and speeding up the registration process for non-declared employees.

In terms of accelerating the implementation of administrative reforms, the PLRF provides for the strengthening of the business climate by simplifying and digitizing procedures, speeding up the implementation of the public services Charter and promoting financial inclusion, notably through the generalization of payment using electronic tools.

The Council of the Government discussed, during the meeting, the different measures in the PLRF and the assumptions on which it is based, and estimated that the GDP could decrease by 5% for the year 2020, while projected budget deficit at -7.5%, added the Government Spokesperson.