(MENAFN- Morocco World News) ;">Rabat – 2016 is expected to be a difficult year for Moroccans after the government adopted the draft 2016 appropriation bill last month.
According to Government Spokesman Mustapha El Khalfi the draft 2016 appropriation bill will implement the general orientations adopted by the Council of Ministers including the reform of the finance organic law and efforts to gradually recover macroeconomic balances. The Moroccan media reported an increase in the costs of living starting in January 2016 after the government decided to gradually lower subsidies on basic commodities including sugar. The lifting of sugar subsidies will be gradually and be completed in 2017. The price of sugar will increase by MAD 0.15 per kilogram every month for a total increase of MAD 1.6 per kilogram by the end of 2016. The price of a kilogram of sugar will be increased by MAD 3.20 by the end of 2017. Given the fact that the national consumption of sugar reached 1.2 million tons per year an equivalent to 36 kilos per capita in 2014 the expected increase in the price of sugar will directly affect the cost of living for people with limited income. The increase in the price of sugar will consequently lead to the increase of many other foods that Moroccans consume on a daily basis including tea pastries juice soft drinks and other products with sugar as a primary ingredient. According to Abdelilah Benkirane Morocco's Head of Government the government plans to save MAD 2 billion compared to an annual compensation expense of about 3.2 billion in 2014 and 3.3 billion in 2015. Water and electricity prices which caused a wave of protests in Tangier in recent months will also go up starting in January 2016. The new price of electricity and water will affect families whose consumption exceed the volume of 6 cubic meter of water and 100 kilowatts of electricity. Because of a significant increase in the value added tax (VAT) this year train ticket prices are also expected to increase by MAD 2 per 100 kilometers and about MAD 26 in tickets for long distances. After the government adopted the draft 2016 appropriation bill last October social media users harshly criticized the bill and the government's performance calling 2016 'a year of increases par excellence.'
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