During a joint session of the two Houses of Parliament, the First President of the Court of Auditors, Zineb El Adaoui, presented a detailed assessment of the institution’s activities for 2023-2024. It highlighted the reforms needed to strengthen the efficiency of public management and reduce pressure on state finances.
The Court of Auditors has recorded certain risks concerning public finances “which must be addressed in the short and medium term, taking into account the growing pressures on public finances and the pace of the implementation of certain planned reforms”, affirmed Zineb El Adaoui, in front of the members of the two Houses of Parliament.
The First President of the Court of Auditors gave a detailed presentation, supported by key figures and critical analyses, highlighting the crucial issues that Morocco must face. In the background, the management of major reforms, the sustainability of public finances and the imperative needs for strategic investments.
Large construction sites and public management, concreting to be consolidated
The first axis of the presentation focused on monitoring the major reform projects undertaken by the Kingdom. Among these projects, social protection stands out as a priority to be finalized.
“The reform of the social protection system will ultimately mobilize 53.5 billion dirhams by 2026, including 38.5 billion financed directly by the State,” explained El Adaoui.
This project, which is decisive for social balance, must follow a sustained pace in order to meet citizens’ expectations. At the same time, persistent water stress requires colossal investments. According to estimates, the period 2020-2027 will require 143 billion dirhams to ensure the supply of drinking water and irrigation water.
This observation also resonates for the El Haouz region, hit by an earthquake in 2024. With more than 9.5 billion dirhams already committed at the end of October, the financial needs for reconstruction and aid to disaster victims remain pressing.
Public investment, an engine of growth to be managed
Zineb El Adaoui highlighted the notable evolution of public investment spending, from 52.3 billion dirhams in 2015 to 119.2 billion in 2023. This effort, although essential, must play a lever role for private investment.
“Increased mobilization of private investment is essential to improve resource allocation, free up budgetary margins and ease pressure on public finances,” she said.
-However, she also warned of the risks associated with these dynamics. Tax reforms, those of public institutions and the investment system must be accelerated to meet budgetary requirements. In 2023, transfers from the state budget to public establishments exceeded 65 billion dirhams, while their contributions to public revenue remain modest (16.8 billion).
Short and medium term emergencies
Among the most sensitive subjects, the reform of the retirement system was highlighted as an absolute emergency. The Moroccan Retirement Fund (CMR), with a technical deficit of 9.8 billion dirhams at the end of 2023, risks exhausting its reserves by 2028.
To preserve the viability of the system, structural reforms must be undertaken without delay. El Adaoui also insisted on the mobilization of innovative resources to finance structuring projects, particularly as part of the preparations for the 2025 African Cup of Nations and the 2030 World Cup, co-organized with Spain and Portugal.
These events require massive investments in sports, tourism and transport infrastructure.
The aforementioned reforms, she said, “can offer attractive margins to meet financing needs, however, to achieve this objective, it is crucial to accelerate their implementation in order to mobilize the resources necessary to time, as well as to establish stable sources of financing and seek other innovative solutions to reduce pressures on public finances.
Zineb El Adaoui
First President of the Court of Auditors
“Risks to public finances must be addressed in the short and medium term, given the growing pressures on public finances and the pace of implementation of certain planned reforms.”
EN / ECO Inspirations
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