Rabat, Morocco (TMT)- Morocco’s compensation fund 2017 budget allocation will not exceed 14.65 billion dirhams, the draft report of the kingdom’s 2017 financial law reads (Projet de Loi de Finance 2017).
The main allocations will be funneled to subsidize butane gas, homegrown wheat flour (FNBT), sugar, including supporting the National Office for Electricity and Water (ONEE).
Thanks to an undertaken reform, the Moroccan government managed to reduce the budget of the compensation fund from 56.6 billion dirhams ($5.8 billion) in 2012 to 32.7 billion dirhams ($3.4 billion) in 2014.
In 2015, the costs dropped further to 20.45 billion dirhams.
The year 2015 proved to be an important stop in the process of the compensation reform. It actually witnessed the implementation of four significant measures, namely i) lifting diesel subsidies, ii) elimination of the revenues of the equalization which has reduced the fuel costs, iii) the consecutive entry into force of the approval for liquid petroleum products prices for the period of January-November 2015, and finally iv) the definitive liberalization of fuel prices on December 1, 2015.
The aim of country’s compensation fund is subside essential products to help poor people get by.
The Moroccan Times.