Compensation Fund (Morocco)
From Wikipedia, the free encyclopedia
| Arabic: صندوق المقاصة | |
 | |
| Formation | 25 February 1941 |
|---|---|
| Headquarters | Rabat, Morocco |
| Leader | Rachida Aabad |
Parent organization | Ministry of Economy and Finance |
| Budget | 26 billion dirhams (2023) |
| Website | www |
The Compensation Fund (صندوق المقاصة) is a Moroccan public institution established in 1941, responsible for supporting the prices of certain basic goods in order to preserve household purchasing power.
It operates mainly through the subsidisation of essential products such as butane gas, sugar and national soft wheat flour. Over time, the Compensation Fund has occupied an important place in Moroccan public finances due to the weight of these subsidies in state expenditure.
The Fund is administered by a board of directors chaired by the Head of Government. Since March 2024, it has been headed by Rachida Aabad.[1]
The Compensation Fund was created in February 1941, in a context of shortages linked to World War II. Its mission was to stabilise prices and ensure the supply of markets.
It was reorganised by dahir law No. 1-74-403 of 19 September 1977, which redefined its legal framework and methods of intervention.
In the early 1980s, as part of the structural adjustment program, Morocco undertook reforms aimed at reducing public expenditure, under the influence of international financial institutions. These measures included a gradual reduction of subsidies on basic goods, leading to price increases.
These developments triggered social unrest, notably in Casablanca, where protests erupted in response to rising bread prices.
In the early 2010s, the budgetary cost of the system reached high levels, with expenditures estimated at 48.4 billion dirhams in 2011[2] and 53.3 billion dirhams in 2012.[3]
Several reports and analyses have highlighted the limitations of the system, particularly regarding the targeting of beneficiaries. According to the Court of Accounts, subsidies disproportionately benefit wealthier households.[4] Other analyses also point to indirect effects, including distortions in consumption patterns.[5]
Reform of the Compensation Fund has been regularly discussed in public debate, although its implementation is considered socially and politically sensitive.[6]
From 2014 onwards, reforms were introduced to gradually reduce subsidies, notably through the partial liberalisation of fuel prices.[7]
On 1 January 2015, subsidies on diesel were abolished, while those on butane gas were maintained.[8]
