Strengthening Budget Transparency (MO0025)

CHALLENGE Morocco has been engaged for years in a process of continuous improvement of budget transparency, especially after the adoption and entry into force of the Organic Law relating to the Finance act in 2016. This has resulted in notable progress of the open budget index, with Morocco ranking in a very honorable position in the Middle East and North Africa (MENA) region. In order to further progress in the area of budget transparency and to better communicate with citizens, Morocco aims to move forward by proactively providing financial information in a simple and appropriate manner to meet citizens’ aspirations. However, it is not always easy for the government to simplify financial information and the content of the state budget for the benefit of the Moroccan citizen, mainly due to the technical aspect of finance acts and public policies, the different expectations of citizens according to their personal and professional interests and the absence of a permanent consultation mechanism allowing citizens to help improve financial reporting. In this regard, the government is committed to developing and publishing the mid-year report, with the aim of updating the information relating to the assumptions on which the finance acts are based in terms of planned expenditure on the one hand, and the revenue expected to be collected at the end of the year on the other hand; these often experience change due to changing external and internal factors, especially those linked to global economic conditions and climatic fluctuations. Since this data is not the subject of a detailed report unlike with the Finance acts (which provide accurate information on global and national economic conditions, revenue and expenditure forecasts, as well as the level of public debt, and the priorities that support the Finance act). Another example, is the monthly public finance statistics bulletin (which presents statistics about revenues and expenditures during the year, with an explanatory for the variation in the rate of change compared to the previous year). As a reminder, it should be noted that Morocco has already prepared and published the preliminary 2019 budget report, as part of the first national action plan for open government for the period 2018-2020 (commitment 11), except that the set publication deadlines were not met for technical reasons, which made it difficult for citizens to obtain timely information in order to have a better interaction with the provisions of finance acts

PROPOSED SOLUTION Regarding the alignment of information intended for citizens, in particular relating to finance laws, a permanent consultation mechanism will be created to allow citizens to contribute to the citizen budget development with the aim of improving it both in terms of form and content. For better budget transparency and in accordance with international standards in this area, a mid-year report will be produced and will contain updated data in comparison with the initial forecasts on which the draft finance law was established, while ensuring that the deadlines for the publication of the pre-budget report are met. In addition, a consolidated report will be prepared and published within the time frame allotted, where the mid-year report and the pre-budget report will be integrated. Thus, 7 reports, out of the 8 reports that are recommended internationally, will be published.

EXPECTED RESULTS ▪Setup a permanent consultation mechanism to involve citizens in drafting the “Citizen’s Budget” document ; • Citizens will be able to observe the budget forecast accuracy as well as the upcoming preparation of the next finance draft law, through the publication of a combined report composed of the mid-year report and the pre-budget report.

PERFORMANCE INDICATORS • Number of reports published on time.

IMPACT INDICATORS • Improving Morocco’s open budget score, in the context of the 2023 open budget survey.

See action plan for milestone activities.

Action Plan Review

Commitment 1. Strengthening Budget Transparency

● Verifiable: Yes

● Does it have an open government lens? Yes

● Potential for results: Modest

Results Report

Commitment 1. Strengthening Budget Transparency

This commitment aimed to increase transparency and public participation in Morocco's budget formation, as reflected by a higher Open Budget Index (OBI) score. Specifically, the commitment aimed for regular publication of a consolidated report that combined the Mid-Year Report and Pre-Budget Statement. It also sought to create a permanent dialogue mechanism to collect public input during the budget process and on the Citizen's Budget. As with other commitments, the change in government during the implementation period diminished government engagement, as evidenced by the changing representation at COPIL meetings. ^[1]

In 2021, Morocco published a Mid-Year Review online for the first time. The Mid-Year Review for the 2020 fiscal year received a score of 56 out of 100 points for comprehensiveness. [2] This score improved for Morocco's 2022 Mid-Year Review, which scored 70 out of 100 possible points. The Ministry states the Mid-Year Review assessed in the 2023 OBI is the same as the consolidated report foreseen under this commitment. [3] However, Morocco's overall transparency score in the OBI decreased by 1 point from 2021 to 2023, due to the Audit Report not being published in a timely manner. [4]

Morocco made incremental progress in increasing opportunities for public participation in the budget process. However, a permanent consultation mechanism was not established during the implementation period. Morocco's OBI score for public participation increased from 7 to 15 points out of 100 points between 2021 and 2023. This score places Morocco on par with the global average. Previously, Morocco only provided some opportunity for public participation during budget implementation. The government now holds limited public consultations during budget formulation and Parliament has introduced public hearings related to approval of the annual budget. [5] According to the Ministry of Economy and Finance, a benchmarking study revealed that more groundwork was needed before the establishment of a public consultation mechanism. The Ministry noted that efforts were underway, such as addressing the need for a minimum understanding of public finance among citizens. ^[6]