Budget Deficit of MAD 29.5 Bln at End of June

The situation of Treasury charges and resources for the first half of 2021 shows a budget deficit of 29.5 billion dirhams, against a deficit of 29 billion dirhams for the same period of 2020, according to the Ministry of Economy, Finance and Administration Reform. This situation should be analyzed taking into account a base effect linked to the impact on tax revenue of the abrupt cessation of activity in 2020, especially during the period of confinement, and of the mobilization in 2020 of exceptional revenues within the framework of the Special Fund for the Covid-19 pandemic management, underlines the ministry. It should also be analyzed taking into account the signs of recovery in economic activity perceptible from the 1st quarter of 2021, in relation to the good agricultural season, the recovery in domestic demand and the progress of the vaccination campaign in favorable conditions, as well as the relaxation, during the month of June, of the sanitary restrictive measures. Thus, revenues recorded, on a net basis of refunds, reductions and tax refunds, an increase of nearly MAD 10.8 billion compared to the end of June 2020 and an achievement rate of 50.4% compared to the forecasts of the appropriation bill (LF). Tax revenues are good with the exception of corporation tax which fell by 11.8%, in relation to the decline in activity in 2020, the document said, noting that, overall, tax revenues increased by 8.4%, thus registering an achievement rate of 55.2%. This increase in tax revenue is 11.8 billion dirhams (12%), if we take into account the solidarity contribution allocated, in 2021, to the support fund for social protection and social cohesion, according to the source.