Ensuring the long-term viability of the pension system requires activating the implementation of the structural reform project (Court of Auditors)

by times news cr

Despite the parametric reforms implemented to the civil pension scheme and the‌ collective retirement⁢ allowance scheme since 2016 and 2021,⁢ respectively, the Moroccan Retirement Fund’s financial balances ⁣remain unsustainable. This depletion⁢ of reserves has been attributed to these reforms.

Given the expansion of membership⁣ in‍ pension schemes in 2025 ⁤to cover non-pensioned⁣ workers, the Court emphasizes the need ⁢to implement a structural reform of these schemes to ensure their‍ long-term viability.

Public‌ finances face economic challenges, primarily due to increased expenditures and revenue constraints. To monitor the performance of public finances, the Court focuses on issues⁢ such ⁢as restoring financial balance, controlling the budget deficit and debt, optimizing the ‍management​ of⁤ special treasury accounts, and ensuring⁤ the sustainability of retirement systems.

The⁤ rise in public spending is attributed to‌ factors such as compensation growth, subsidies, ⁣wage pressures in the civil service, and​ reforms in healthcare, education, and retirement. Conversely, tax revenue is‍ expected to decline due to economic slowdown, despite ‌positive trends⁣ in previous years. Non-tax revenue sources may not be sufficient to compensate for the expenditure ⁣increase.

Furthermore, financing constraints are tightening, with‍ rising interest rates⁣ impacting the cost‍ of debt. ‌The Court emphasizes ⁤the importance of continuing and accelerating reforms in public finances and other structural reforms, including the restructuring of public institutions and companies,⁤ social protection system reform, and infrastructure development.

Given the significance ⁢of special treasury ​accounts in the State budget, the Court highlights⁢ the need for​ their efficient ⁢management, suggesting the need to​ streamline their number ⁢and share⁣ in the budget.

The efficiency of public ⁣investment is also ‍questioned, as significant investments over the past ‍decade have had limited impact on economic growth ​and productivity. The Court recommends establishing an institutional framework for prior assessment of public investment projects and creating a centralized database supported by an effective information system for monitoring and decision-making.

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