Morocco's budget deficit jumps to 21.8 billion dirhams in first half

RABAT (Reuters) – Morocco's budget deficit reached 21.8 billion dirhams in the first half of 2019, compared with 20.4 billion dirhams the year before, the Treasury announced on Friday.

Gross tax revenues increased 4.5% to 110 billion dirhams in the first half, compared to 106 billion dirhams in the same period in 2018.

State spending amounted to 182.5 billion dirhams between January and June 2019, up 15.4% from one year to the next.

The budget deficit stands at 4.5% in 2019, not counting privatization receipts, compared to 3.7% last year. According to the planning agency, the deficit should be reduced to 3.6% by 2019, counting privatization receipts.

The agency expects the Treasury debt to increase slightly, from 64.9% in 2018 to 65.3% of gross domestic product in 2019.

The economy is expected to grow by 2.7% in 2019 after 3% in 2018.