Morocco's budget deficit up in the first half of 2019

Morocco's budget deficit reached 21.8 billion dirhams in the first six months of 2019, compared to 20.4 billion dirhams the previous year.

According to Reuters, quoting the General Treasury of the Kingdom (TGR), gross tax revenues increased 4.5% to 110 billion dirhams in the first half, against 106 billion dirhams during the same period in 2018. State spending was at 182.5 billion dirhams between January and June 2019, up 15.4 percent from last year.

The budget deficit stands at 4.5% in 2019, albeit the number does not comprise privatization receipts, compared to 3.7% last year. According to forecasts by the High Commission for Planning (HCP), the deficit should be reduced to 3.6% in 2019, following the proceeds of privatization. The institution expects the Treasury debt to increase slightly from 64.9% in 2018 to 65.3% of gross domestic product in 2019.

For the record, the Moroccan economy is expected to grow by 2.7% in 2019 after 3% in 2018.