Morocco to rely on privatization to limit budget deficit in 2019, says Benchaaboun

Morocco expects to generate 8 billion dirhams by improving governance of public companies and encouraging privatization, said Reuters on Monday quoting Economy and Finance minister Mohamed Benchaaboun’ presentation on the 2019 draft budget in the parliament.

The minister believes that this would help «curb the budget deficit to 3.3 percent of GDP in 2019» . According to Benchaaboun, Morocco’s budget deficit would be limited to 3.7 without privatization.

Benchaaboun expects the country to make 2 billion dirhams in 2019 and 2020 «from a 2.5 percent solidarity tax on the net profit of firms with annual net profit above 40 million dirhams», reports Reuters.

The country is planning to increase the domestic consumption tax on tobacco all while financing projects related to education, health and youth employment for 27 billion dirhams.