Morocco Budget Cuts Subsidies

Pursuing its declared policy of reducing the cost of state subsidies, Morocco has announced that its 2015 draft budget will see a 34% cut in subsidies to MD23bn ($2.7bn) from MD35bn in 2014 and MD42bn in 2013.

Having peaked in 2012, Morocco began reducing subsidies shortly after, representing around 4.7% of GDP in 2013 (MEES, 21 March). But while the government has ended subsidies for gasoline and fuel oil, it is still providing subsidies for diesel. As of October, it has been paying a subsidy of MD0.8 ($0.09)/ liter for diesel.

This measure could soon come to an end however, if international oil prices continue to slide, as they have done since mid-June, Finance Minister Muhammad Boussaid says. (CONTINUED - 286 WORDS)