The analysis of the report presented by the Treasurer General of the Kingdom, Noureddine Bensouda, at the opening of the 16th International Conference on Public Finances, reveals both encouraging and worrying prospects for Moroccan public finances. The current dynamic demonstrates a desire for improvement and innovation, but it also calls for constant vigilance to guarantee the sustainability of finances and the financing of the country’s economic and social development.
During the opening of the 16th International Conference on Public Finances, organized on November 1 and 2 by the Ministry of the Economy and Finance and the Association for the International Foundation of Public Finances (FONDAFIP), with the support of the journal of public finances, the Treasurer General of the Kingdom, Noureddine Bensouda, presented an introductory report highlighting the crucial issues of Moroccan public finances.
In his speech, Mr. Bensouda stressed that beyond tax reforms, the establishment of an efficient and well-governed financial administration is essential. He noted in this sense that management based on solid governance, planning in line with the reality on the ground, and reliable information systems are sine qua non conditions for a significant improvement in public finances. The future, in the eyes of the Treasurer General of the Kingdom, lies in artificial intelligence, which could substantially optimize the mobilization of resources and improve the efficiency of spending.
Mr. Bensouda’s report also highlights a persistent challenge: despite efforts to improve the governance of public expenditure and revenue, the state’s ordinary revenues remain insufficient to cover operating and investment expenses. He specified that, between 2001 and 2023, the rate of coverage of overall expenditure by tax revenue fluctuated, going from 67.3% in 2001 to 85.9% in 2008, then to 65.2% in 2023. Budget deficit has also experienced significant variations, oscillating between 6.8% of GDP in 2012 and 4.4% in 2023, while Treasury debt increased from 67.1% of GDP in 2001 to 69.5%. in 2023. Mr. Bensouda thus pointed out that this situation increases the State’s costs and reduces budgetary room for maneuver, recalling the words of William E. Simon, former Secretary of the American Treasury, on the need to live according to its means.
Looking at recent reforms, Bensouda noted a trend toward public-private partnerships to improve financial governance, while warning of the risk of excessive privatization. He highlighted the need to regulate the multiplication of stakeholders, both at the level of the State and local authorities, to avoid the fragmentation of public finances. According to him, a variety of actors can be a source of effectiveness, but requires unity of action to avoid sterility of efforts.
The need to break out of usual silos is also a major concern. Mr. Bensouda cited Keynesian economist Mariana Mazzucato to support the idea that it is imperative to coordinate different policies and detect synergies to maximize resource efficiency. Faced with the growing financing needs of Morocco’s social model, it is crucial to review the public finance governance model, in particular by continuing to improve tax collection and unifying the legal framework for public sector finances.
In this regard, Mr. Bensouda mentioned the reform of the decree on public procurement initiated in 2023. He highlighted the efforts of the General Treasury to strengthen the constitutional principle of equal opportunities and competition, and to harmonize the public purchasing procedures. This reform aims to modernize and rationalize the public purchasing process while integrating economic, social and environmental dimensions.
The public procurement portal, presented as a single, unifying and integrated platform, facilitates exchanges between public buyers and suppliers. Mr. Bensouda indicated that this initiative offers modern tools, such as the publication of calls for tenders and electronic submission. However, he recognized that the implementation of this reform encountered resistance, mainly linked to the need for unification of legal frameworks. He recalled that actors had tried to resort to divergent internal regulations, which did not respect the competitive standards established by the State.
Mr. Bensouda’s intervention also focused on the importance of a strong commitment from political and administrative actors to advance the reform of public markets. He mentioned the support of the Head of Government and other ministers, stressing that the reform was developed in consultation with all stakeholders. This support made it possible to overcome reluctance and ensure the effective implementation of the new rules.
In a context where public finances are often marked by structural deficits, Mr. Bensouda reaffirmed the need for better allocation of resources between the different actors in the public sector, taking into account budgetary constraints and national priorities. He called for rigorous management of public revenue collection, particularly taxes, in order to fully exploit their potential.
