PLF 2023. The Government’s Prescription for Enhancing Purchasing Power

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Salman Blayashi, Managing Director of CRI Casablanca - Settat,

For public sector employees…

In accordance with all the obligations contained in the April 30 agreement, the government was keen to include in the Finance Bill a series of measures in favor of workers in the public sector, including in particular the reduction of income tax according to the level of the monthly salary, knowing that people with limited incomes are exempt from income tax, And increasing the minimum wage in the public sector to 3,500 dirhams, which is approximately 140 dirhams per month. Provision has also been made to abolish scale 7 in order to allow civil servants to move directly from scale 6 to scale 8, increase the share of promotion in the schedule to 36% instead of 33% and maintain full salary for civil servants benefiting from medium and long-term sick leave with An increase in family allowances, such as for private sector employees, from 36 dirhams to 100 dirhams for the fourth, fifth and sixth children.

The government also allocates for the year 2023 about 6 billion dirhams to settle progress at the level and level.

In order to maintain the purchasing power of Moroccans…

To face the repercussions of successive global crises, the government plans to allocate 26 billion dirhams for compensation expenses under the 2023 financing law. Price increases, as the consumer price index would have exceeded the level recorded by 3% this year, Akhannouch insists, adding that without the intervention of the Compensation Fund With a budget of 22 billion dirhams, the cost of a gas cylinder would have been 137 dirhams. Citizens instead of 40 dirhams. The Head of Government took this opportunity to list the various measures that were put in place in 2022 to maintain purchasing power. He cites in particular the support of transport companies, which required a budget of 5 billion dirhams. It also confirms that 13 billion dirhams were injected to pay the value-added tax in order to enhance the cash flow of companies, especially small and medium-sized companies. Aziz Akhannouch pointed out that “to maintain the stability of electricity prices, the state’s general budget bore a large part of the electricity production bill, an amount of 100 dirhams that appears on the electricity receipt, which is in fact a real cost of 175 dirhams.” Specifically, an envelope of 5 billion dirhams of additional appropriations was allocated to the budget of the National Office of Electricity and Drinking Water, whose accumulated debts amount to more than 60 billion dirhams, and the reduction requires a contribution from the state budget of 20 billion dirhams. billion dirhams over the next four years. Akhannouch insists that “the additional support for purchasing power did not come in any way at the expense of investment budgets allocated to priority sectors, primarily health and education.”

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