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Public finances: the Court of Auditors warns of the urgency of strengthening room for maneuver

In its 2023-2024 annual report, the Court of Auditors underlined the urgency of providing additional budgetary margins to deal with exceptional crises, the frequency of which has increased significantly in recent years. It highlights the growing pressures on public finances, particularly due to large-scale programs such as the National Program for the Supply of Drinking Water and Irrigation (143 billion dirhams), the reform of the social protection system (53, 5 billion dirhams by 2026) or the reconstruction plan after the Al Haouz earthquake.

The Court notes that tax revenues increased by 11.7% in 2024, thanks to the tax reform initiated in 2022, but warns of the need to accelerate other major reforms. The rationalization of public spending, the reform of public establishments and enterprises (EEP), as well as the increase in private investment are among the solutions proposed to reduce the burden on the state budget.

Concerning the viability of the retirement system, the Court points out the worrying situation of the Moroccan Retirement Fund (CMR), whose reserves are declining, with a technical deficit of 9.8 billion dirhams in 2023. Without urgent reform, these funds risk total exhaustion by 2028. At the same time, it emphasizes the importance of better management of public investments, recommending the establishment of formalized mechanisms for their selection, monitoring and evaluation.

Finally, the Court of Auditors calls for rigorous control of compulsory expenditure, in particular those linked to personnel, debt and compensation. It also recommends strengthening budgetary performance, improving expenditure forecasting and regulating the use of additional credits. Sustained efforts are necessary to guarantee the balance of public finances in a context marked by major economic and climatic challenges.

M.Ba.


Morocco

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