Morocco’s Compensation Fund is set to reach MAD 38 billion ($3.6 billion) of additional spending by the end of 2022, Government Spokesperson Mustapha Baitas said in a press briefing on Thursday.
The fund is used to subsidize the prices of essential goods such as cooking gas, cereals, and sugar. Part of the extra spending for the fund also went towards supporting the transport industry amid a persistent rise in fuel prices.
This year witnessed a rise in the prices of essential fuel and nutrition goods, partly due to the war in Ukraine impacting the global markets for cereals and gas. This has in turn forced Morocco’s government to increase subsidiary spending in order to keep said products affordable for its population.
Similarly, the government launched a subsidy program for professionals in the transport industry to keep services affordable, in the face of rising energy prices that forced some operators to raise prices.
“The year 2022 was not an easy one, it was full of challenges that we faced with confidence and the spirit of responsibility,” Head of Government Aziz Akhannouch said during the government council this Thursday.
The government chief highlighted international geopolitical conflicts, as well as a severe drought, as the main causes behind the challenges that the government faces.
The rise in prices had ignited strong negative sentiments towards Akhannouch’s government, with the hashtag #DegageAkhannouch (#LeaveAkhannouch) having trended on social media earlier this year.
SOURCE: Morocco news