The Organic Budget Law of 1998 in Morocco: A Foundation for Fiscal Modernization

The Loi Organique n° 7-98 relative à la loi de finances, enacted in Morocco in 1998, commonly referred to as the Organic Budget Law (OBL), represents a watershed moment in the country’s fiscal management. This law aimed to modernize the budget process, enhance transparency, and strengthen parliamentary oversight, moving away from a largely input-based system towards a more performance-oriented approach. It laid the groundwork for subsequent reforms and continues to shape how the Moroccan government manages its finances.

Prior to 1998, the budget process in Morocco was characterized by its rigidity, focus on allocating inputs rather than achieving outcomes, and limited parliamentary involvement. The OBL sought to address these shortcomings by introducing several key innovations. One of the most significant was the introduction of a program budget. This approach shifted the focus from simply allocating funds to specific line items to defining clear objectives and measuring the performance of government programs in achieving those objectives. Ministries were required to develop multi-year strategic plans outlining their goals and the resources needed to achieve them.

Another crucial aspect of the 1998 OBL was its emphasis on enhanced transparency and accountability. The law mandated the publication of more detailed budget information, including performance indicators and evaluations. This greater transparency aimed to facilitate informed public debate and hold government accountable for its spending decisions. The law also strengthened the role of the Cour des Comptes (Court of Auditors) in auditing government spending and reporting its findings to Parliament.

Furthermore, the OBL sought to enhance the role of Parliament in the budget process. It provided Parliament with more information about the budget and gave it greater powers to scrutinize and amend the government’s proposals. While the government still retained significant control over the budget, the OBL helped to create a more balanced relationship between the executive and legislative branches. The law also defined a clearer timeline for the budget process, ensuring that Parliament had sufficient time to review the budget before it was approved.

The implementation of the 1998 OBL was not without its challenges. Transitioning to a program budget required significant capacity building within government ministries. Developing meaningful performance indicators and accurately measuring the outcomes of government programs proved to be complex tasks. Despite these challenges, the 1998 OBL represented a significant step forward in modernizing Morocco’s fiscal management.

While the 1998 law was groundbreaking, it was eventually superseded by a revised Organic Budget Law in 2015 (Loi organique n° 130-13 relative à la loi de finances). The 2015 law further builds upon the principles established in 1998, incorporating lessons learned and addressing new challenges, such as the need for greater fiscal discipline and sustainability. The 1998 law provided the essential foundation for these later reforms, shaping the evolution of Morocco’s public financial management system. Its legacy continues to influence how the Moroccan government plans, executes, and accounts for its budget.