Compensation System: Shocking numbers make of reform a necessity

Compensation System: Shocking numbers make of reform a necessity


According to Article 148 of the Constitution, the Supreme Council of Audit has prepared a report on the compensation system in Morocco. The Court has published a report (a first of its kind), which provides a clear diagnosis of the costly compensation system, and proposals for its reform.

This report comes as a response to a proposal for the evaluation of the compensation system, submitted by the President of the House of Representatives, which dates back to July 18th 2013.

Said report draws a dark picture of the current system of compensation, which costs a sizeable share of the budget; for a system that is aimed to support the poorer class of Moroccan society, the report indicates that poor families, whose numbers reach the 6.8 Million benefit from 36% (16.5 Billion Dirhams) only, while wealthier families benefit from most of the share (45.85 Billion Dirhams).

This unbalance is due to the number of families (1.8 millions), which own a vehicle (s) and benefit from the costly compensations on fuel. This is also due to the higher purchasing power of this social class, since families that are well-off consume more products, some of which are covered by the compensation system. This means that more of the compensation money is allocated to the ones with greater purchasing power.

Additional details about the diagnosis and proposals are listed in the report (in French), which can be found at the Supreme Council of Audit’s website.

The results of the report were presented by the First President of the Council, Driss Jettou on Monday, March 31, 2014 at a joint meeting of the Committee of Justice, Legislation and Human Rights, and the Committee of Finance and Economic Development.

The Moroccan Times.