Morocco’s Budget Deficit Reaches MAD 21.1 Billion by February 2025

Morocco’s budget deficit surged to MAD 21.1 billion by February 2025, up from MAD 3.8 billion a year prior. Gross revenues increased to MAD 56.6 billion, driven by taxes, though offset by declining customs duties. Ordinary expenses surged by 50.5%, leading to a negative ordinary balance of MAD 18.2 billion. Total expenditures were up 41.6%, while Special Treasury Accounts reported a positive balance amidst these challenges.

Morocco’s Treasury has reported a substantial increase in its budget deficit, which reached MAD 21.1 billion ($2.1 billion) by the end of February 2025. This represents a significant deterioration compared to the MAD 3.8 billion ($0.38 billion) deficit incurred during the same timeframe last year. The recent public finance statistics indicate that this deficit includes a positive balance of MAD 14.2 billion ($1.42 billion) from Special Treasury Accounts (CST) and state-managed services (SEGMA).

Gross ordinary revenues climbed to MAD 56.6 billion ($5.55 billion), a 9.7% increase from MAD 51.6 billion ($5.16 billion) reported in February 2024. This rise is primarily due to a considerable 48.1% increase in direct taxes, alongside a 7.1% growth in indirect taxes. Additionally, registration and stamp duties rose by 2.8%. Nonetheless, these revenue gains were somewhat mitigated by a 6% decrease in customs duties and a sharp 58.5% decline in non-tax revenues.

On the expenditures front, ordinary expenses surged by 50.5%, primarily attributed to a 49.6% increase in goods and services spending, significantly impacted by a dramatic 130.2% rise in miscellaneous goods and services costs. This occurred despite a slight 0.8% reduction in personnel costs. Interest charges on debt increased by 37.2%, while tax refunds and related expenditures saw an extraordinary rise of 363.4%. Furthermore, compensation-related expenditures declined by MAD 500 million ($50 million).

As a result of collected revenues and expenditures, Morocco recorded a negative ordinary balance of MAD 18.2 billion ($1.82 billion) by February 2025, contrasting sharply with a positive balance of MAD 1.9 billion ($0.19 billion) from the previous year. Overall, total general budget expenditures reached MAD 96 billion ($9.6 billion) this February, reflecting a year-over-year increase of 41.6%, driven by a 52.2% hike in operating expenses and a 73.9% surge in budgeted debt charges. Special Treasury Accounts demonstrated a revenue of MAD 43.6 billion ($4.36 billion) with expenditures of MAD 29.8 billion ($2.98 billion), contributing to a positive balance of MAD 13.8 billion ($1.38 billion).

In summary, Morocco’s budget deficit has significantly increased to MAD 21.1 billion, alongside a marked rise in gross ordinary revenues driven by direct and indirect taxes. However, the country faces escalating expenditures, particularly in goods and services, leading to a considerable negative ordinary balance. The overall financial situation indicates heightened challenges in managing public finances amid rising expenses and variable revenue streams.

Original Source: www.moroccoworldnews.com