Draft Finance Bill 2022 or the Second Modernisation of Morocco

Since 2019, the Finance Law 130-13 has institutionalised the Triennial Budget Programming. So the Finance Bill 2022 would be the beginning of an ambitious triennium for the Kingdom of Morocco. The Kingdom's Minister of Economy and Finance, Nadia Fattah Alaoui, has just presented to Parliament, in a joint session of the two chambers, the Budget Law for the coming year 2022, the broad outlines of which deserve to be described as historic.

The progress that the Kingdom of Morocco has been experiencing over the last 10 years has led to the country's first modernisation. However, this 2022 Finance Bill has a greater implication and represents the Second Modernisation and the underpinning of the democratic and social state unparalleled in the Maghreb region and on the African continent.

It should be noted that this Budget Law for 2022 is based on the orientations of King Mohammed VI, the National Development Plan and the programme of the new Akhannouch government.

It is a Finance Budget that foresees a growth rate of 3.2%. A cautious estimate that could be adjusted upwards at the end of the year. The same happened with the 2021 rate, which was forecast at 4.8 and which last September reached 5.5 and could end the year at 5.8. A positive deviation that the International Monetary Fund (IMF) estimates at over 6%.

These budgets, presented to Parliament on 25 October, have a dual dimension, the socio-economic and financial, which is very significant, and another, much more transcendental one, the geopolitical dimension.

The socio-economic and financial dimension prioritises four main axes, namely a) consolidating the foundations for the recovery of the national economy post COVID-19, already underway in 2021, b) the generalisation of social protection, c) the strengthening of human capital and the reform of the public sector and governance.

The aim is to relaunch the country's economy by taking advantage of a very positive epidemiological situation, with 70% of the population fully vaccinated and close to 2 million vaccinated with the third dose. A very favourable outlook for the definitive take-off of the economy after the pandemic hiatus (which has not gone badly either). In addition, a variable reduction in corporate tax is planned, depending on the amount of companies' net profits.

However, the most important aspect of the 2022 Finance Bill is its social aspect. It is the most social budget in the country's history. It places Moroccans at the centre of public policy concerns. On the one hand, they provide for the beginning of universal social security for the entire Moroccan population, from Tangiers to Güera. On the other hand, they foresee the development of the potential capacities of human capital by promoting education and training, as well as the revaluation of individuals and their creative power. Young people will compete on equal terms for jobs and will also have access to affordable credit to finance their entrepreneurship in all sectors of the economy, both nationally and internationally, within the "Forza Programme", i.e. "Opportunity". All this within the framework of a sustainable economy, based on the progress made in the fight against climate change.

Another significant aspect foreseen by the Budget Law refers to the reform of the public sector and its governance, which would affect all public and/or semi-public administrations. The aim is to correct, adapt and even eliminate all inefficient, ineffective, and incoherent public services. This public administration reform also envisages the fight against corruption and tax evasion in all its forms. This suggests that Morocco's second modernisation will be based on a solid, coherent, and credible foundation.

On the other hand, the geopolitical dimension of this budget law for 2022 is based on the implementation of the National Development Plan, which will consolidate not only Morocco's democratic state but also its social state. If the conduct of the last elections in Morocco was exemplary, applauded by the international community for its transparency and the level of citizen participation, it testifies to the irreversible path towards full democracy in Morocco, the social aspect of this Finance Law, with a record amount of 245 billion dirhams for social reforms, testifies to the country's determination to eliminate social and gender inequalities.

Both aspects would provide the country, over the next three years, with an unprecedented modern state structure, comparable to that of the EU countries. By doing so, Morocco is asserting itself as a democratic and social country, underpinning its leadership in the Maghreb and on the African continent.

The 2022 budget law demonstrates Morocco's concern for the education, health, and welfare of the Moroccan people, who, in addition to benefiting from the country's modernisation process, will become an actor and participant in it.