Morocco’s government is preparing a draft decree for a budget extension of MAD 10 billion ($1 billion) to improve the finances of several government institutions, the country’s Minister Delegate to the Minister of Finance, responsible for the budget Fouzi Lekjaa announced.
Lekjaa explained during a meeting of the House of Representatives’ Finance and Economic Development Committee that the extension will aim to deal with issues such as water scarcity and inflation, as well as benefit the tourism sector.
Of the MAD 10 billion in the extension, MAD 4 billion ($400 million) will be allocated to the National Office of Electricity and Drinking Water (ONEE), and MAD 1.5 billion ($150 million) to the National Program for Drinking and Irrigation Water Supply 2020-2027.
Additionally, MAD 3.3 billion ($330 million) will be to cover expenses to protect citizens’ purchasing power, while MAD 1.2 billion ($120 million) will go to the benefit of Morocco’s tourism sector roadmap.
Water scarcity and inflation have recently been cited as two of the biggest issues currently facing Morocco.
Facing its worst drought its decades, Morocco saw its agricultural outputs for the 2021-22 season decrease dramatically, contributing along with international supply chain issues to a shortage in many essential food items over the past two years.
Water scarcity has led the government to take some radical measures, including cutting subsidies on profitable and vital crops like avocados and watermelons for their high rate of irrigation water consumption.
Last year, some Moroccan regions also saw their drinking water be rationed during certain times of the day for the interest of resource preservation.
The shortage in food supplies has contributed to the ongoing strain on Moroccans’ purchasing power, as citizens continue to decry government inaction with many essential food items such as tomatoes and red meat becoming more and more out of reach for many in the country.
The government implemented a similar MAD 12 billion ($1.1 billion) extension in October, citing similar reasons related to the rising prices of fuel and food.
