16% of planned investments made

The increase in ordinary revenue stems in particular from indirect taxes, which fell by 18.6%.

Only 16% of the budgets allocated by local authorities to investment have been achieved in eight months, with barely 6.71 billion DH spent in response to 16.7%! And this, at a time when other, so-called ordinary expenses, increased by 8.6%. Ordinary receipts cost 2.9%. As a result, at the end of August 2022, local authorities posted a surplus of 7.4 billion and overall surpluses generated by the budgets for this year and previous years of 48.8 billion.

Local authorities have made only a small part of the investments programmed for this year. Evidenced by the rate of achievement of budgets allocated to investment which was only 16% in eight months, with barely 6.71 billion DH spent in response to 16.7%! And this, at a time when these communities continue to accumulate significant budget surpluses. This is what emerges from the latest monthly bulletin of local finance statistics published by the General Treasury of the Kingdom (TGR). On the other hand, ordinary expenses (which do not include investments) increased by 8.6% due to the 1.5% increase in personnel expenses and 21% increase in expenses for other goods and services, combined with the 10.8% drop in debt interest charges. With regard to ordinary receipts, they recovered relatively at the end of August, accelerating an increase of 2.9%, after a decline of 1.1% at the end of last July.

This growth is due in particular to indirect taxes, which fell by 18.6% thanks in particular to the increase in the share of local authorities in VAT revenue (+18.1%). It is also relatively supported by the 3.7% increase in non-tax revenue, resulting mainly from the increase in assistance funds, state revenue and the fee for temporary occupation of municipal public property, combined with the decline in subsidies. On the other hand, direct taxes contracted by 14.6% following the fall in the share of the regions in the product of the IS and the IR (-37.7%), the tax on urban land unbuilt (-14.1%), municipal service tax (-6.2%), business tax (-1.9%) and housing tax (-8.1%).

Tax revenue levied by the State (share of local authorities in the product of VAT and share of the regions in the product of corporate income tax, income tax and tax on insurance contracts) represents 49.8 % of the overall revenue of local authorities, indicates the TGR. As a result, at the end of August 2022, the execution of the budgets of local authorities showed a positive ordinary balance of 12.6 billion against a positive ordinary balance of 13 billion a year earlier and an overall surplus of 7.4 billion, taking into account a positive balance of 1.56 billion generated by special accounts and annexed budgets, against an overall surplus of 5.8 billion recorded a year earlier. At the end of August 2022, the overall surpluses generated by the budgets of local authorities for this year and previous years amounted to 48.8 billion.




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