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Artificial Intelligence and the Modernization of Public Spending : Towards an Augmented Contingency Model for Fiscal Governance in Morocco
[L’intelligence artificielle au service de la modernisation de la dépense publique :]

Author

Listed:
  • Mohamed Bazi

    (UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar))

  • Mohamed Adraoui

    (UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar))

  • Saad Boudraa

    (UH2C - Université Hassan II de Casablanca = University of Hassan II Casablanca = جامعة الحسن الثاني (ar))

Abstract

The current study examines the question of the possible influence of artificial intelligence on the future development of public finance management in the Middle East and North Africa region, in particular Morocco. In other words, the study seeks to investigate the possibility of using artificial intelligence technologies, including predictive analytics and simulation-based decision support, for shifting from static budgeting to dynamic budgeting. Our study is based on a conceptual framework, which is informed by an extensive review of the literature on public financial governance and application of AI in government. Using data from the World Bank, IMF, and OECD on institutions, we seek to compare fiscal inflexibility and readiness for AI in the region. Challenges include fluctuating oil prices and geopolitics of the Strait of Hormuz in 2025-2026. Our study suggests that there is indeed genuine potential for AI applications to improve the process of financial forecasting, enhance the allocation of available public funds, and contribute to the transition from crisis-driven governance to strategic budgetary management. In this paper, we have developed a theoretical framework for the role of AI as a mediating factor between budgetary restrictions and organizational agility.

Suggested Citation

  • Mohamed Bazi & Mohamed Adraoui & Saad Boudraa, 2026. "Artificial Intelligence and the Modernization of Public Spending : Towards an Augmented Contingency Model for Fiscal Governance in Morocco [L’intelligence artificielle au service de la modernisation de la dépense publique :]," Post-Print hal-05664166, HAL.
  • Handle: RePEc:hal:journl:hal-05664166
    DOI: 10.23882/ijdam.26324
    Note: View the original document on HAL open archive server: https://hal.science/hal-05664166v1
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    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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