2021 investments only 38% completed

Local entities only reached their investment budgets by 38% in 2021. This contributed to the increase in their global surpluses, which amounted to 44.3 billion. However, they continue to show growing needs both in terms of new infrastructures and improvements to existing ones. This confirms once again that it is not the lack of resources that hampers the action of local authorities, but the absence of good governance.

Local authorities still struggle to properly execute their investment budgets as they continue to run large budget surpluses. Last year they made just 38% of the planned investments. And this, at a time when they are showing growing needs for both new infrastructures and improvements to existing ones. This confirms once again that it is not the lack of resources that hampers the action of local authorities, but the absence of good governance. In fact, they have generated a global surplus of 3.4 billion dirhams last year, taking into account a positive balance of 1.4 billion dirhams generated by special accounts and attached budgets, compared to a total surplus of 257 million dirhams recorded a year earlier. This surplus of 3,400 million is intended to cover the expenses incurred and whose payment will be made the following year. This follows from the Monthly Bulletin of Local Treasury Statistics published by the General Treasury of the Kingdom (TGR).

As a result, at the end of December 2021, the global surpluses generated by the budgets of local entities for the year 2021 and previous years reach 44,300 million. These surpluses are used to cover the aforementioned commitments in terms of operating expenses and equipment. Thus, of the approximately 40,000 million planned in the investment budget for 2021, the municipalities only made 15,200 million at the end of December, 1.5% more than the previous year. For ordinary expenses, the execution rate was 78% with almost 24.5 billion, an increase of 1.9% in one year. This is due to a 0.8% rise in personnel spending and a 3.3% rise in spending on other goods and services, combined with a 0.5% drop in interest charges on debt. And this, at a time when ordinary income has increased significantly (12.9%), with an achievement rate of 90%. This is due, in particular, to the 25.7% increase in direct taxes following the increase in the tax on municipal services (+26.7%), the tax on economic activities (+36.2%), on land unbuilt urban (+34.6%), the region’s share of the IS and IR product (+12.3%) and the housing tax (+47.4%).

It is also due to the 1% drop in indirect taxes, which is attributed in particular to the decrease in the share of local authorities in VAT collection (-2.4%) and in the share of tax collection on insurance contracts (-16.6%), combined with the increase in the tax on construction operations (+32.2%). The TGR data show an increase of 30.6% in non-tax revenues, especially from the increase in subsidies (+62.2%), the rate for temporary occupation of the municipal public domain (+26.9%) and state income (+20.6%) . They also point out that the tax revenues transferred by the State (participation of local entities in the product of VAT and participation of the regions in the product of IS, IR and tax on insurance contracts) represent 48.7% of global collection of local entities.





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