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Morocco: The High Cost of Running Government | With an economy struggling to grow, the Moroccan government has enacted a series of measures aimed at curbing spending related to the functioning of the administration. But these measures, which included a promised reduction in the state automobile fleet, a curbing of cost of travel and other items have failed to generate the savings anticipated early on, causing concerns about the rate of spending within the administration.

Analysts say that the only way government can control cost is by enacting two unpopular measures: curbing wages in the administration or reducing government investments, both of which would be political suicide. With the latest round of borrowing of $750 million on the international market, equivalent to MAD 6.5 billion, the state debt level rose to MAD 522 billion at the end of April 2013. That figure continues to rise, this time up 6.4% compared to its level of end of April 2012.  Continue here | Click here to subscribe | Contact us to discuss this topic

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