The coronavirus outbreak has caused a surge in spending and a drop in revenues for state coffers pushing the government to review the targets and spending schemes under the 2020 budget while maintaining priority for social spending. The administration has adopted austerity measures to reduce unnecessary spending saving some $200 million that was scheduled for conferences, seminars and events, Finance Minister Mohamed Benchaaboun told Upper House members. No cuts affected commitments for social services including education, health and efforts to reduce social and territorial disparities, he said. In total, $4.8 billion was mobilized to support the needy including people with special needs and widows equaling 4.5% of Morocco’s GDP, one of the highest social spending rates in the world, he said. Morocco so far mobilized $5 billion in foreign debt to finance its balance of payments.

Source: The North Africa Journal July 18, 2020 15:56 UTC