Overview of Morocco's Financial Situation
Recent official data has revealed a concerning trend in Morocco's financial landscape, indicating a significant budget deficit of 34.5 billion dirhams as of February 2026. This figure marks an increase from 24.8 billion dirhams reported in the previous year, primarily driven by a decrease in revenues, which fell by 2.5 billion dirhams, alongside a notable rise in expenditures, which increased by 7.2 billion dirhams. These developments underscore the mounting pressure on the country's fiscal stability, as highlighted in the statistical document provided by the Ministry of Economy and Finance, which compares current financial data with the same period last year.
Revenue and Expenditure Analysis
The financial data indicates a persistent strain on Morocco's public budget, exacerbated by a combination of exceptional factors and an uptick in investment spending. Specifically, ordinary revenues reached 51.2 billion dirhams by the end of February, reflecting a decrease of 4.7% compared to the same month in the previous year. Tax revenues amounted to 48.6 billion dirhams, representing a decline of 5.6%, primarily due to a 19.4% drop in income tax revenues. This decline is attributed to the absence of extraordinary income recorded in January 2025, linked to a voluntary tax settlement initiative.
Meanwhile, the value-added tax (VAT) saw a modest increase of 3.6%, spurred by robust internal value-added performance. However, it is noteworthy that both customs duties and internal consumption taxes experienced declines of 13.6% and 7.5%, respectively. On the other hand, non-tax revenues grew by 17.7%, reaching 1.4 billion dirhams, bolstered by returns from public enterprises and various products. In stark contrast, total public expenditures surged to 85.7 billion dirhams, marking a 9.1% increase. Ordinary expenditures reached 73.9 billion dirhams, with employee expenses rising by 21.6% due to the implementation of social dialogue outcomes, while subsidies saw a significant reduction of 31.6%.
Investment expenditures also demonstrated a robust increase of 37.1%, amounting to 23.1 billion dirhams, indicative of the state's commitment to major infrastructure projects. Despite the challenges posed by rising expenditures, treasury accounts recorded a surplus of approximately 11.3 billion dirhams, which helped mitigate the overall budget deficit. This surplus is primarily attributed to funds allocated for social support and protection programs, which are disbursed progressively according to the planned initiatives.
In terms of financing needs, the total financing requirements of the treasury stood at 40.9 billion dirhams. The treasury predominantly relied on domestic financing, mobilizing 19.3 billion dirhams from the local market. Additionally, external financing through net borrowing increased significantly, reaching 976 million dirhams, compared to only 92 million dirhams in February of the previous year. This shift reflects an effort to diversify financing sources to address the escalating deficit and maintain the equilibrium of public finances.
As reported by hespress.com.
