On Thursday, October 19, 2023, during the Council of Ministers chaired by his majesty king Mohammed VI, may God assist him, at the Royal Palace in Rabat, and in accordance with the provisions of Article 49 of the Constitution, the Minister of Economy and Finance made a presentation to his majesty the king on the General Guidelines of the Finance Bill for the year 2024.
The Minister stressed that the preparation of this Finance Bill takes place against a backdrop of slowing global economic activity, persistent geopolitical tensions and rising inflationary pressures and energy prices, in addition to the impact of the painful earthquake that struck our country last September.
Under the far-sighted leadership of his majesty the king, may God preserve Him, Morocco has demonstrated a positive and highly effective response to this natural disaster. In application of the High Royal Instructions, an integrated, multidimensional program has been drawn up, encompassing all sectors and aimed at rebuilding and upgrading the affected regions. It concerns almost 4.2 million inhabitants of the affected areas, with an estimated budget of 120 billion dirhams over five years.
The Minister added that the Finance Bill aims to pursue the reforms launched and implement the priorities announced in the Royal Speeches and in the government program.
The general orientations of the Finance Bill for 2024 focus on four main areas:
Firstly : The implementation of the "General reconstruction and upgrading program for the regions affected by the Al Haouz earthquake", as well as the reinforcement of measures to combat the cyclical impacts: Pursuant to the High Royal Instructions, this program will be implemented rapidly, using an integrated approach and coordinated governance based on the establishment of the High Atlas Development Agency within a conventional framework involving all stakeholders, with contributions from the General State Budget, local authorities, the Special Solidarity Fund dedicated to managing the effects of the earthquake and the Hassan II Fund for Economic and Social Development, in addition to international aid and cooperation.
Alongside the mobilization of an additional budget to meet social dialogue commitments, water resource management is a priority, with the accelerated implementation of the National Drinking Water Supply and Irrigation Program, and support for agricultural inputs to mitigate inflation and bolster citizens' purchasing power.
Secondly: Continuing to consolidate the foundations of the social State: in particular through the implementation of the Royal project for social protection, via the continued generalization of Basic Mandatory Health Insurance for the benefit of disadvantaged categories, in parallel with the gradual operationalization of direct social assistance from the end of the current year, by backing it up with the targeting system of the Unified Social Register, as affirmed by His Majesty the King in the Opening Speech of Parliament.
This program targets 60% of Moroccan families not currently covered by social security schemes. In view of the importance of this major Royal societal project, and in recognition of the high regard in which his majesty the king, may God bless him, holds needy and vulnerable families, it is planned that the value of direct social assistance will not be less than 500 dirhams for each targeted family, whatever its composition.
This societal project will be accompanied by the completion of the legal framework for the rehabilitation of the national health system and the continuation of the reform of the education and training system, as one of the pillars of the social State.
In keeping with the High Royal Instructions, priority will also be given to operationalizing the new housing assistance program.
Thirdly: Ongoing implementation of structural reforms: in particular, completion of the reform of the justice system, with the aim of consolidating the rule of law and guaranteeing the legal and judicial certainty needed to achieve overall development, as well as the implementation of the High Royal Instructions concerning the revision of the Family Code.
In application of the High Directions of his majesty the king, may God bless him, productive investment will be set up as an essential lever for revitalizing the national economy and anchoring Morocco in promising productive sectors, notably through the continued operationalization of the Mohammed VI Fund for Investment and the implementation of the new Investment Charter, to consolidate the investment dynamic and contribute to the implementation of various structuring reforms in the fields of agriculture, tourism, administrative reform and the process of administrative deconcentration and advanced regionalization.
Fourthly: Reinforcing the sustainability of public finances: in particular, through reform of the Organic Law on the Finance Law, continued development of innovative financing, as well as enhancing the value of the public portfolio and improving its performance, while ensuring the implementation of the framework law on tax reform and controlled, rational management of administrative operating expenses.
The Minister pointed out that the Finance Bill is based on assumptions calling for a growth rate of 3.7% in 2024 and a budget deficit within the limit of 4% of GDP.