This report shows that the budget deficit was controlled thanks to "innovative" financing mechanisms and that there was an increase in ordinary revenues due to a significant improvement in non-tax revenues. The report also posted an increase in overall expenditure due to the rise in expenditure on personnel and on other goods, services, and investment, the Audit court said in a statement.

"The budget deficit has been controlled at almost the same level recorded a year earlier. It amounted to MAD 41.672 million, against MAD 41.658 Mln in 2018," the source added.

Budget deficit control can be explained by a significant improvement in ordinary revenues (+ MAD 16.832 Mln), which covered the increase in overall expenditure (+MAD 15.536 mln). It also can be explained by a decrease in the balance of special Treasury accounts (- MAD 1,310 Mln ). Tax and non-tax revenues increased by MAD 2.762 million and 14.038 Mln respectively.

Personnel expenditure and other goods and services expenditure increased by MAD 5,294 mln and MAD 7,089 mln respectively, while compensation expenses and those relating to debt interest decreased by MAD 1,646 mln and MAD 12 mln respectively. Similarly, capital expenditure posted a MAD 4,811 million increase (+7.3%).

As for the Treasury's outstanding debt, it continued its upward trend with an increase of MAD 25,376 million (+3.5%) compared to 2018, 53% of which is in the form of external debt. Since 2009, the outstanding debt has more than doubled, going from MAD 345,177 million to MAD 747,996 million, which equals to an average annual growth rate of 8%. The debt ratio thus stood at 65.4% of GDP, virtually stable compared to the level reached in 2018, according to the report.

The outstanding debt of the State institutions and State undertakings rose from MAD 279.2 billion in 2018 to MAD 284.1 bln in 2019, which equals to 24.6% of the GDP, while the guaranteed debt peaked at MAD 160.2 billion (13.9% of the GDP).

The report also shows that ordinary revenues from the general state budget amounted to MAD 249.9 billion (+ MAD 16.8 billion as compared to 2018). This increase is mainly due to a 1.3% rise in tax revenues, which rose from MAD 209.1 billion to MAD 211.9 billion, and that of non-tax revenues which rose by MAD 14 billion (+61.6%).

Overall expenditure amounted to MAD 293,903 million, exceeding ordinary revenues by MAD 43,927 million. These expenses increased by MAD 15,536 million as compared to 2018 (+5%).

According to the report, personnel expenditure amounted to MAD 111,526 million while the payroll was estimated at MAD 149,270 million in 2019 (+6% in a year) and represented 12.9% of GDP.

However, the Audit court warns that "the level of implementation of capital expenditure remains modest" in the sense that expenditure continues to be made mainly through budget transfers from the ministries and common expenditure budgets (investment in special accounts of the Treasury and the State institutions and State undertakings).