Lekjaa: LOF reform goals to materialize the Kingdom’s growth insurance policies

The reform of natural legislation No. 130.13 regarding the finance legislation (LOF) goals to develop the monetary coverage and make it able to implementing the Kingdom’s growth insurance policies, affirmed, Wednesday in Rabat, the Minister Delegate to the Minister of Economic system and Finance, answerable for the Funds, Fouzi Lekjaa.

Talking at a joint assembly of the finance committees of each homes of Parliament, devoted to presenting the federal government’s imaginative and prescient concerning the reform of the LOF, Mr. Lekjaa confused that after eight years of implementation of this legislation, follow has demonstrated the necessity to make amendments to a few of its provisions to strengthen the governance of public finance administration.

He stated the proposed amendments intention to broaden the scope of the natural legislation to incorporate public establishments finishing up non-commercial exercise, to strengthen the sustainability of public funds and to consolidate the position of Parliament within the growth and execution of finance legal guidelines.

On this regard, Mr. Lekjaa famous that public establishments finishing up non-commercial actions, numbering roughly 200 establishments and 20 authorized entities topic to public legislation, represent an extension of the State’s powers, which requires their submission to parliamentary management, in accordance with worldwide practices.

On this sense, Mr. Lekjaa defined that the proposed strategy offers that the funds of those institutions be topic to the monetary and budgetary guidelines consisting of creating forecasts of all revenues and bills, adopting the provisional nature of the budgets, along with the opportunity of opening extra credit throughout the 12 months.

These budgets must also be topic to a efficiency strategy and to present accounting requirements, he added.

Concerning the target of strengthening the sustainability of public funds, the Minister stated that the proposed reform offers for broadening the scope of parliamentary authorization with a view to strengthen the transparency of public finance administration, to rationalize the administration of allotted sources by enhancing their restoration and optimum allocation, and to make sure extra sources for the State Funds.

The LOF, he argued, will embody a definition of those allotted sources, their areas, their ceiling and the phrases of fee of their surplus to the Common Funds.

Moreover, Mr. Lekjaa confused that monetary sustainability is a elementary precept to make sure sustainable social and financial growth, deeming it needed to incorporate a brand new budgetary rule to permit the LOF to set the principles for the monetary steadiness of the State “in order that they change into an indeniable precept.”

On this regard, the Minister confused the significance of defining the aims, ranges and trajectory of medium-term debt, whereas together with an exception to this rule linked to the evolution of the financial and monetary state of affairs.

Concerning the position of the Legislative Establishment within the preparation and execution of finance legal guidelines, Mr. Lekjaa specified that the draft LOF, as amended, offers for decreasing the timetable for analyzing and voting on the draft amending finance legislation from 15 to five days (3 days within the Home of Representatives, in the future within the Home of Councilors and in the future within the Home of Representatives for a second studying).

Additionally it is a query of attaching to the amending finance legislation a presentation word specifying particularly the amended articles and of creating the unique competence of the parliamentary committees chargeable for finance for the examination and vote on this legislation.

On the similar time, the proposed modification plans to introduce new provisions regarding the settlement legislation, particularly the discount of the deadlines for submitting this legislation to Parliament (earlier than the top of December of the 12 months following the budgetary 12 months involved) and the help of the settlement invoice by the overall account of the State, supported by the steadiness sheet, the earnings assertion, the money movement assertion and an evaluation of off-balance sheet commitments, the minister added.

And to help that the modification additionally considerations strengthening the efficiency methodology by presenting to the related parliamentary committees the efficiency experiences regarding the earlier 12 months, accompanied by the draft budgets of the ministerial departments, and to commit the dematerialization of the method of preparation and presentation of draft finance legal guidelines in accordance with the implementing procedures outlined by a regulatory textual content.

This assembly was additionally a chance for Mr. Lekjaa to recall that natural legislation No. 130.13 regarding the finance legislation has made it doable, since 2016, to modernize the general public finance system and strengthen its adaptation to worldwide requirements and practices.

In keeping with the minister, this legislation presents the opportunity of controlling the steadiness and strengthening budgetary and accounting self-discipline and credibility, decreasing the funds construction from 1,055 paragraphs and 258 articles in 2013 to 577 initiatives and 129 packages in 2024, in addition to linking funds packages to the aims and indicators of the implementation of sectoral insurance policies.

Thus, 37 ministerial departments have ready initiatives and efficiency experiences, together with for the present 12 months 383 aims and 786 efficiency indicators, he specified, noting that the analysis program “Public Expenditure and Monetary Accountability” (PEFA – Public Expenditure and Monetary Accountability) welcomed the notable evolution of Morocco within the subject of public finance administration.

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