Reforming Subsidies in Morocco

Paolo Verme, Khalid El-Massnaoui () and Abdelkrim Araar ()
Additional contact information
Khalid El-Massnaoui: World Bank
Abdelkrim Araar: World Bank

World Bank - Economic Premise, 2014, issue 134, 1-5

Abstract: The cost of the subsidy system in Morocco peaked at 6.6 percent of gross domestic product (GDP) in 2012, an amount larger than the country’s total investment budget for that year. Direct subsidies to households in 2013 (October 2013 prices) are estimated at DH34.4 billion (US$4.1 billion, or 3.9 percent of GDP). Replacing direct subsidies with a universal per capita annual cash transfer of DH749 (US$90) would leave the poverty rate unchanged, while reducing direct subsidies to DH24.6 billion (2.8 percent of GDP). It is possible to reduce direct subsidies further by targeting only a part of the population, down to DH2.4 billion (0.3 percent of GDP), if only the poor were targeted. However, to implement selective targeting, the government of Morocco would need to substantially strengthen its social protection system.

JEL-codes: E3 E6 H2 H5 H6 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://siteresources.worldbank.org/EXTPREMNET/Resources/EP134.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wbk:prmecp:ep134

Access Statistics for this article

More articles in World Bank - Economic Premise from The World Bank 1818 H Street, N.W., Washington, DC 20433. Contact information at EDIRC.
Bibliographic data for series maintained by Michael Jelenic ().