Reuters
RABAT (Reuters) – Morocco’s budget deficit jumped almost five-fold in the 12 months to end-July, following the entry into effect of higher wages and pensions for the public sector.
The budget deficit stood at 23.6 billion dirhams ($2.64 billion) during the January-July, 2012 period up from 4.2 billion dirhams a year earlier, finance ministry data showed.
The public sector wage bill rose 13.4 percent to 55.9 billion dirhams by end-July while spending on subsidies stood at 31.9 billion dirhams, which is 57.5 percent above its level in January-July, 2011, the data showed.
($1 = 8.9343 Moroccan dirhams) (Reporting by Souhail Karam; editing by Patrick Graham)
