“The finance bill for 2025 is structured around realistic and complementary priorities aimed at responding to the various economic and social challenges, based on the results and achievements obtained during the first half of the government mandate, and in accordance with orientations guaranteeing continuity, in order to continue strengthening the pillars of the social state and the national economic and financial model,” said Ms. Fettah during a joint plenary session of the two Houses of Parliament, devoted to the presentation of the main lines of this bill. On this occasion, the minister indicated that the government has set, within the framework of the PLF 2025, four key priorities, namely, “the continued strengthening of the pillars of the social state”, “the consolidation of the dynamics of the investment and job creation”, “the continued implementation of structural reforms” and “the preservation of the sustainability of public finances”.
Ms. Fettah stressed that the development of the PLF 2025 takes place in a global context marked by great uncertainty, due to the succession of climate crises, the increase in geopolitical tensions and their economic repercussions, estimating that the growth rate global growth is not expected to exceed 3.2% during 2024 and 2025, while a slight increase in growth is expected in the euro zone (0.9% in 2024 and 1.3% in 2025).
At the national level, she continued, this bill is being developed in a context characterized by a drop in inflation to 1.1% at the end of last August, thanks to the efforts made by the Executive to support prices. and agricultural inputs.
The minister also argued that the national economy should record growth of 3.3% by the end of 2024, driven by the sustained dynamics of the non-agricultural sector, whose added value would increase by 3.7% after an increase by 3.5% in 2023.
This dynamic, she added, will make it possible to reduce the budget deficit to around 4% in 2024, after reaching 5.4% in 2022 and 4.3% in 2023, noting that this improvement is attributed to the continuation of the increase in tax revenue which recorded an increase of 23.9 billion dirhams (billion dirhams) at the end of last September, or +11.9% compared to the same period in 2023.
Furthermore, Ms. Fettah specified that taking into account developments in the national context, as well as the economic situation of the Kingdom’s main trading partners and their repercussions on the dynamics of national economic activity, the government aims to achieve growth of 4.6%, under the assumption of inflation limited to 2%, an increase in external demand, excluding phosphates and derivatives, of 3.2%, a cereal harvest of 70 million quintals (Mqx ) and an average price of butane gas at $500/ton.
She also affirmed that the development of the PLF 2025 coincides with the celebration of the 25th anniversary of the accession of King Mohammed VI to the Throne of his Glorious ancestors, noting that the reign of the Sovereign is marked by a process of global development.
And to support: “This glorious period in the history of the Kingdom has seen the strengthening of the positioning of our country on the continental and international levels, as well as the accumulation of decisive diplomatic achievements and achievements, and an unprecedented international dynamic which supports our territorial integrity, achieved thanks to the wise conduct of HM the King.”
In this regard, Ms. Fettah assured that the government has been engaged, since its appointment, in a serious and practical manner in this modernization process under the wise leadership of HM the King.
The achievements accomplished during the first half of the current government mandate are “clear both on the social level, through the generalization of social protection, the acceleration of the reform of the health system, the execution of reforms of education, higher education and vocational training, the institutionalization of social dialogue and the support of purchasing power,” she noted.
As for the economic aspect, the minister recalled the establishment of the Investment Charter, the acceleration of the approval of large-scale investment projects and the start of their implementation, in addition to the reforms of the business environment, regional investment centers and justice, as well as those aimed at simplifying administrative procedures and strengthening administrative decentralization.
All these efforts are part of rigorous management of financial balances, guaranteeing optimal use of capacities without compromising the foundations of financial solidity in the face of risks of slippage, according to Ms. Fettah who specified that the investment budget increased from MAD 245 billion in 2022 to MAD 335 billion in 2024, while the annual growth rate of current revenue reached 12.5% between 2021 and 2023.
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