Budget Profile and Fiscal Policy in Morocco

Abstract

This paper examines the structural changes that have marked the profile of public finance since 2012, and list the main internal challenges that Morocco is facing in managing public finances. The second part is devoted to presenting four approaches (the effective tax rate, the marginal tax rate, the elasticity, the regression and the analysis of co-integration) used by international institutions to forecast fiscal revenues. Then we estimate deficit government income and expenditure in 2020 and 2021, considering two scenarios; a baseline and an alternative scenario. The results of the alternative scenario shows the sustainability of policy decisions that; (i) raise resources for growth stimulating sectors; infrastructure sector, education and health, scientific research and governance, and (ii) reduce energy uses while ensuring the shift towards cleaner energy.