Artificial Intelligence and the Modernization of Public Spending: Towards an Augmented Contingency Model for Fiscal Governance in Morocco

L’intelligence artificielle au service de la modernisation de la dépense publique

Mohamed Bazi, Mohamed Adraoui and Saad Boudraa ()
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Mohamed Bazi: UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)
Mohamed Adraoui: UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)
Saad Boudraa: UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar)

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Abstract: The current study examines the question of the possible influence of artificial intelligence on the future development of public finance management in the Middle East and North Africa region, in particular Morocco. In other words, the study seeks to investigate the possibility of using artificial intelligence technologies, including predictive analytics and simulation-based decision support, for shifting from static budgeting to dynamic budgeting. Our study is based on a conceptual framework, which is informed by an extensive review of the literature on public financial governance and application of AI in government. Using data from the World Bank, IMF, and OECD on institutions, we seek to compare fiscal inflexibility and readiness for AI in the region. Challenges include fluctuating oil prices and geopolitics of the Strait of Hormuz in 2025-2026. Our study suggests that there is indeed genuine potential for AI applications to improve the process of financial forecasting, enhance the allocation of available public funds, and contribute to the transition from crisis-driven governance to strategic budgetary management. In this paper, we have developed a theoretical framework for the role of AI as a mediating factor between budgetary restrictions and organizational agility.

Keywords: Public expenditure; Digital governance; Fiscal resilience; MENA; Budget agility; Artificial intelligence; Public finance; Public finance Artificial intelligence Budget agility MENA Fiscal resilience Public expenditure Digital governance. JEL Classification: H50 H61 O33 O38 E62 (search for similar items in EconPapers)
Date: 2026-05-21
Note: View the original document on HAL open archive server: https://hal.science/hal-05664166v1
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Published in International Journal of Digitalization and Applied Management, 2026, 3 (2), pp.80 - 98. ⟨10.23882/ijdam.26324⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05664166

DOI: 10.23882/ijdam.26324

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