The budget deficit is reduced this year thanks to higher tax revenues – Hoy 24

At the end of August 2022, the Ministry of Economy and Finance reported that the budget deficit and treasury resources had recorded a budget deficit of Dh30.4 billion, compared to Dh43.3 billion in the previous year.

In its special bulletin on the state of budgets and treasury resources for the month of August 2022, the ministry clarified that this development covers an increase in income (plus 33.5 billion dirhams) more important than the increase in public spending (plus 20.6 billion dirhams) .

In detail, revenue, on a net basis of returns, exemptions and tax refunds, recorded a 21 percent improvement over the end of August 2021, and a compliance rate of 73.5 percent over the expectations of the Finance Law.

For its part, tax revenues performed well in general, with an increase of 19.8 percent, thus registering a compliance rate of 75.1 percent, despite the increase in refunds, exemptions and tax refunds, which amounted to a total amount of 9,400 million dirhams.

For its part, non-tax revenue amounted to about 23.4 billion dirhams, and revenue from public and contracting institutions amounted to 7.1 billion dirhams, including 4 billion dirhams collected from the Sharif Phosphate Bureau, 2.2 billion DH from the National Real Estate Agency, Land Survey and Cartography, and DH 505 million from Al-Maghrib Bank, while “other income” amounted to DH 16.3 billion, including DH 10.2 billion for innovative financing.

The bulletin indicated that regular expenditures saw an increase of around AED 22 billion (up 12.9 per cent) and an implementation rate of 73.5 per cent. This development compared to August 2021 is mainly due to an increase in compensation costs of AED 15.9 billion and expenses related to goods and services (plus AED 5.1 billion).

The increase in cleaning costs is due, in particular, to the high price of butane gas, which reached an average of $801.5 per ton. These costs amounted to 28.6 billion dirhams, a completion rate of 84.5 per cent compared to the updated expectations in this regard (33.8 billion dirhams).

These costs also include support for transport professionals worth 2.1 billion dirhams, as part of the measures decided by the government to deal with rising energy prices.

Spending on goods and services increased by AED 1.9 billion as “other goods and services” and by AED 3.3 billion as employee expenses.

For its part, interest on debt increased by 940 million dirhams to 23,400 million dirhams, covering the increase in interest on domestic debt (plus 1,000 million dirhams), and a slight decrease in those related to external debts in (less 61 million dirhams) .

This evolution of ordinary income and expenses translated into a positive normal balance of 779 million dirhams, compared to a negative balance of 10.7 billion dirhams at the end of August 2021.

Regarding investment spending, the publication confirmed that emissions amounted to Dh47.2 billion, compared to Dh42.3 billion a year ago, noting that compared to expectations from the Finance Law by 2022, its completion rate reached about 60.5 percent.

For their part, the special accounts of the treasury achieved a surplus of approximately 16,000 million dirhams, compared to 9,800 million dirhams at the end of August 2021. The resources of these accounts include 6,400 million dirhams, which represents the result of social solidarity contribution on profits and income, destined for the Support Fund for Social Protection and social cohesion.

The statement of budgets and treasury resources is a statistical document that represents, on behalf of the Ministry of Economy and Finance, the results of the implementation of the expectations of the Finance Law compared to the same period of the previous year.

While the resulting position of the Kingdom’s public treasury is essentially arithmetic, the position of the liabilities and resources of the treasury, as recommended by international standards in the field of public financial statistics, accommodates the economic transactions that take place during a budget period with a description, in terms of flows, income and regular expenses and investment expenses The budget deficit and financing needs and the funds mobilized to cover these needs.