25/10/2006
Morocco's draft budget for 2007, submitted last week to parliament by Privatisation and Finance Minister Fathallah Oualalou, envisages additional financing for local communities through a revision in income tax and local taxation. The new bill states that 1% of all tax proceeds will be allocated to local communities in 2007. With income tax receipts in 2007 projected to reach 25.6 billion dirhams and local taxes to contribute an additional 21.6 billion dirhams, local communities would receive 477m dirhams to finance infrastructure, irrigation and educational projects.
The 2007 draft budget also envisages a separate account for water purification and desalination, a project to be operational from January 2007. Funds will be also allocated for protection of the environment, development of infrastructure, supporting Morocco's candidacy to hold the International Exhibition in Tangier in 2012, and construction of a medical centre in Agadir.
About 70% of funds envisaged for government expenditure will be distributed between several ministries. The Education Ministry will have the largest share, with 35% of total spending. The Interior Ministry comes next with 20%, Health 7%, Finance 1.5% and Justice 1%. (L'Economiste, Le Matin)