Local authorities: 47 billion DH of budget surpluses

Salaries represent 51.5% of the operating expenses of local authorities and absorb the equivalent of 63.9% of their share in VAT revenue.

The overall budget surpluses of local authorities increased by 6 billion DH during the first half of 2022. This brings them to more than 47 billion, taking into account the surpluses generated by the budgets of previous years. The surplus recorded this year is due to the significant gap between revenue (20.88 billion, up 4.5% over one year) and expenditure (11.39 billion, up 7.8%) and the underperformance of investments (-8.5% to 4.3 billion at the end of June 2022).

Local authorities continue to sleep on huge budget surpluses, moreover in continul reinforcement. At the end of June 2022, they had, in fact, released more than 47 billion DH of surpluses generated by their budgets for the first half of the current year (6 billion, against 5.2 billion a year earlier) and previous years. This is what emerges from the Monthly Bulletin of Local Finance Statistics published by the General Treasury of the Kingdom (TGR). This surplus stems from the significant gap between revenue (20.88 billion, up 4.5% over one year) and expenditure (11.39 billion, up 7.8%), generating a positive ordinary balance of 9.5 billion and the counterreformance of investments.

The latter, in fact, posted a contraction of 8.5%, standing at 4.3 billion at the end of June 2022. This drop is explained, notes the TGR, in particular by the reduction in emissions under integrated projects. (-363 million DH), new works and major repairs (-255 million), movable acquisitions (-93 million), real estate acquisitions (-88 million) and national programs (-80 million), combined with the increase in subsidies (+477 million). For other expenses, the TGR figures show in particular an increase of 2.2% in personnel expenses and 19.6% in expenses for other goods and services, combined with a 9.2% decline in expenses. in debt interest. It should be noted that salaries represent 51.5% of the operating expenses of local authorities and absorb the equivalent of 63.9% of their share in the VAT product, according to figures from the TGR. With regard to receipts, their increase is due in particular to an 18.5% link in indirect taxes, essentially to the increase in the share of local authorities in VAT revenue (+22.3%).

They are also supported by the 2% increase in non-tax revenue (2%), stemming in particular from the increase in assistance funds, state revenue and the fee for temporary occupation of municipal public property, combined with the reduction grants. On the other hand, direct taxes fell by 9.7%, following the fall in the share of the regions in the proceeds of corporate income tax and income tax (-41%), the tax on undeveloped urban land (-8%), municipal services tax (-2.8%) and housing tax (-3.7%), combined with the increase in business tax (+14.7%). It should be noted that the tax revenues suppressed by the State (share of local authorities in the VAT product and share of the regions in the product of the IS, the IR and the tax on insurance contracts) represent 49.7% of the overall revenue of these communities.




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