Morocco’s budget deficit has grown to MAD 21.1 billion ($2.1 billion) as of February 2025, significantly higher than the MAD 3.8 billion deficit the previous year. Despite an increase in gross ordinary revenues by 9.7%, swelled by direct and indirect tax increments, a 50.5% surge in ordinary expenses has heightened the deficit. Total general budget expenditures rose to MAD 96 billion ($9.6 billion), further complicating the fiscal landscape.
As of February 2025, Morocco’s Treasury has experienced a significant escalation in its budget deficit, which has reached MAD 21.1 billion ($2.1 billion). This figure starkly contrasts with the MAD 3.8 billion ($0.38 billion) deficit observed during the same timeframe in the previous year, indicating a serious deterioration in fiscal stability as reported by the General Treasury (TGR).
The latest statistics from Morocco’s public finance reveal that the budget deficit is partially offset by a positive balance of MAD 14.2 billion ($1.42 billion) derived from Special Treasury Accounts (CST) and state services managed independently (SEGMA). Gross ordinary revenues have also shown an increase, reaching MAD 56.6 billion ($5.55 billion), representing a 9.7% growth from MAD 51.6 billion ($5.16 billion) in February 2024.
The rise in gross ordinary revenues is largely attributable to a remarkable 48.1% increase in direct taxes and a 7.1% increase in indirect taxes. Additionally, registration and stamp duties have experienced a 2.8% growth. Nevertheless, these advancements were somewhat diminished by a 6% decrease in customs duties and a significant 58.5% decline in non-tax revenues.
On the expenditure front, ordinary expenses surged by 50.5%. This increase was driven by a 49.6% rise in costs associated with goods and services, primarily due to a staggering 130.2% growth in miscellaneous goods and services expenses. Conversely, there was a slight reduction of 0.8% in personnel costs.
Furthermore, debt interest charges increased by 37.2%, while payments related to tax refunds, relief, and restitutions skyrocketed by 363.4%. Compensation-related expenditures also saw a decrease, amounting to MAD 500 million ($50 million). The negative ordinary balance now stands at MAD 18.2 billion ($1.82 billion) compared to a positive MAD 1.9 billion ($0.19 billion) reported the previous year.
Total general budget expenditures have risen to MAD 96 billion ($9.6 billion) by February 2025, reflecting a 41.6% increase over the past year. This growth comprises a 52.2% hike in operating costs, a modest 1.3% increase in investment outlays, and a significant 73.9% rise in debt charges. In comparison, Special Treasury Accounts generated revenues of MAD 43.6 billion ($4.36 billion) against expenditures of MAD 29.8 billion ($2.98 billion), yielding a positive balance of MAD 13.8 billion ($1.38 billion).
In summary, Morocco’s budget deficit has dramatically increased to MAD 21.1 billion ($2.1 billion), raising concerns about fiscal sustainability. Increased revenues from direct and indirect taxes have been overshadowed by soaring expenditures, particularly in goods and services and debt servicing. This fiscal trend underscores the challenges facing Morocco as it grapples with rising costs amid economic pressures, reinforcing the need for effective budgetary measures moving forward.
Original Source: www.moroccoworldnews.com
