RABAT, Oct 27 (Reuters) - Morocco's draft 2010 budget includes a 20 percent boost in public investment to bolster domestic consumption and resist the global economic downturn.
Following are some of the budget's forecasts and details of planned spending:
GROWTH:
The government expects the economy to grow 3.5 percent next year, compared to 5.3 percent this year when a record grain harvest boosted farm incomes and domestic consumption, and 5.6 percent in 2008.
Non-farm economic growth is expected to fall to 2.7 percent this year from 4.2 percent in 2008.
TRADE:
The current account deficit is expected to fall to 4 percent in 2009 from 5.2 percent in 2008, and remain steady at 4-4.5 percent in 2010.
INFLATION:
The government is forecasting inflation of 2 percent next year and the same this year, down from 3.9 percent in 2008.
STATE FINANCES:
It sees a 2009 budget deficit of 2.7 percent, updated from an earlier forecast of 2.9 percent of GDP. It expects the budget deficit to widen to 4 percent in 2010.
A 0.4 percent decline in fiscal income to 148.6 billion dirhams is forecast, partly due to income tax and corporate tax cuts.
SPENDING PLANS:
Public works spending is seen growing 20 percent next year to 162.6 billion dirhams ($21.45 billion). State investment is seen up 19 percent at 53.8 billion dirhams.
BIG PROJECTS:
An expansion of Jorf Lasfar power station, wind farms in Tangier and Tarfaya, a combined-cycle power station at Ain Beni Mathar and a gas-fired power station at Kenitra, adding a combined 1,200 MW of power. Total investment by state power utility ONE: 10 billion dirhams.
State water utility ONEP will boost spending to 4.1 billion dirhams from 3.3 billion to add dams and water treatment plants.
Agriculture upgrades worth 5.2 billion dirhams are planned for next year, and fisheries projects worth 570 million dirhams.
Industrial zones, business parks: 1.95 billion dirhams.
The justice system will see its budget grow by 36 percent to 3.2 billion dirhams to help push through reforms.
Education budget to grow to 51 billion dirhams in 2010 from 46 billion in 2009.
NOTE: Forecasts are based on an average oil barrel price of $75.
For more on Morocco's 2010 draft 2010 budget, double-click on [ID:nLQ521071] and [ID:nLR279110]