Morocco’s Compensation Fund Costs Drop by 42%

Morocco’s Compensation Fund Costs Drop by 42%

Morocco's head of the government, Mr Abdellilah Benkirane.
Morocco’s on term head of the government , secretary general of the Islam-ethically-inspired Justice and Developement Party (PJD) Abdellilah Benkirane.

Rabat, Morocco (TMT)-Following the reforms Morocco’s Islam-ethically-inspired Justice and Development party (PJD) shoehorned in the post-gaze of their win in the post-Arab-spring elections, the costs of the compensation funds have dropped to an unparalleled degree, namely by a 42% factor.

According to a report The Moroccan Times received from the Moroccan Ministry of Governance and General Affairs, the compensation fund allocations to subsidize butane gas, sugar, and other products stood at DH 7.109 million, against DH 12.300 million the period before.

The Benkirane government made of reforming the compensation fund a necessity since they won the last elections, despite the impact such reforms reform had on Moroccan citizens’ purchasing power and inflation.

The aim behind Morocco’s system of compensation, which costs a sizable share of the governmental budget, is to support the poorer class of the Moroccan society, yet various reports have indicated that poor families, whose numbers reach the 6.8 Million, benefited the least from the said allocation since the instillation of this caisse years ago, while wealthier families and corporations benefited the most.

The recent reform came to to put the compensation fund on the right track, initially by stopping the subsidizing of gasoline and fuel oil procucts. Currently, the Moroccan government is looking for ways to stop subsidizing butane gas by directly allocating the subsidy to the poor families only.

The Moroccan Times.