In order to mitigate the effects of rising world prices and commodity prices, the government resorted to subsidies. At the end of last April, compensation expenses amounted to nearly 11.8 billion dirhams, against 6.3 billion dirhams in 2021, an increase of +87% over one year.
Speaking in parliament, the Minister Delegate to the Minister of Economy and Finance, in charge of the Budget, Fouzi Lekjaa gave some details of the support of the executive, in particular subsidies for basic foodstuffs, in a context of social tension.
According to the Minister, imports of soft wheat and keeping the price of flour stable on the national market, required at the end of April, a subsidy of 2.52 billion dirhams, for an imported quantity of 2 million tons, specifying that this expenditure should exceed 7.32 billion dirhams, for the whole of the year, in order to maintain the price of subsidized bread at 1.2 dirhams per unit.
With regard to butane gas, the government should pay this year, 22 billion dirhams, according to forecasts, to maintain the bottle of butane gas at a selling price of 42 dirhams. Already, the State has disbursed some 7.3 billion dirhams at the end of April, against 4.2 billion dirhams a year earlier. “The average subsidy granted by the state for each 12 kg bottle is around 100 dirhams or 71% of the real price of the bottle,” revealed the minister.
Regarding sugar, the Minister indicated that the cost of the subsidy during the first quarter of 2022 for this product reached 1.47 billion dirhams, an increase of +26% compared to the same period of the year. ‘last year. It should also be noted that the exceptional State support intended for road transport professionals, with a total budget of 1 billion dirhams paid in two tranches, is also included in the expenses of the compensation fund.
