The ratings on Morocco are constrained by its: High, albeit gradually decreasing, fiscal deficit and debt burden. The general government deficit (including grants, and expenditures from Hassan II fund) is expected at about 4.0% of GDP in 2004, compared with 4.3% in 2003 and 3.2% in 2002. The lower deficit expected in 2004 is primarily due to reduced subsidies, limits on wage increases and capital outlays, and improved tax collection. Standard&Poor's estimates government primary balances (balances excluding interest payments) at close to zero, which is sufficient to reduce the debt burden. The general government debt burden is expected to continue to decrease, to 73.7% of GDP in 2004, from 82.6% in 2000. Nevertheless, it remains much higher than
