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Rabat – Morocco’s Treasury recorded a dramatic increase in its budget deficit, reaching MAD 21.1 billion ($2.1 billion) by the end of February 2025, according to a recent report from the country’s General Treasury (TGR).
This marks a significant deterioration from the MAD 3.8 billion ($0.38 billion) deficit reported during the same period last year.
The latest monthly bulletin of public finance statistics notes that this deficit factors in a positive balance of MAD 14.2 billion ($1.42 billion) from Special Treasury Accounts (CST) and autonomously managed state services (SEGMA).
Meanwhile, gross ordinary revenues rose to MAD 56.6 billion ($5.55 billion), up 9.7% from the MAD 51.6 billion ($5.16 billion) recorded in February 2024.
This increase stems primarily from a substantial 48.1% jump in direct taxes and a 7.1% rise in indirect taxes.
Registration and stamp duties also increased by 2.8%. However, these gains were partially offset by a 6% decline in customs duties and a sharp 58.5% drop in non-tax revenues.
On the expenditure side, ordinary expenses surged by 50.5%. This spike resulted from a 49.6% increase in goods and services spending, driven by a massive 130.2% rise in miscellaneous goods and services costs, despite a slight 0.8% decrease in personnel expenses.
Debt interest charges grew by 37.2%, while tax refunds, relief, and restitutions skyrocketed by 363.4%. Compensation-related expenditures fell by MAD 500 million ($50 million).
Based on collected revenues and issued expenses, Morocco recorded a negative ordinary balance of MAD 18.2 billion ($1.82 billion) by February 2025 – a stark contrast to the positive balance of MAD 1.9 billion ($0.19 billion) reported a year earlier.
Total general budget expenditures reached MAD 96 billion ($9.6 billion) by February 2025, representing a 41.6% increase year-over-year. This growth reflects a 52.2% rise in operating expenses, a modest 1.3% increase in investment spending, and a substantial 73.9% jump in budgeted debt charges.
Special Treasury Accounts recorded MAD 43.6 billion ($4.36 billion) in revenue, while their expenditures reached MAD 29.8 billion ($2.98 billion), resulting in a positive balance of MAD 13.8 billion ($1.38 billion).
