Morocco Shrinks Budget Deficit to 3.5% of GDP, Strengthens Public Finances

Morocco closed 2025 with a budget deficit of MAD 60.5 billion ($6.66 billion), or 3.5% of GDP, meeting the target set by the 2025 Finance Law and improving by 0.3 percentage points compared to 2024, according to the Ministry of Economy and Finance.

The reduction in the deficit also contributed to a decline in the debt ratio, which fell to 67.2% of GDP. 

The ministry attributed the improvement to revenue growth outpacing expenditure, with total receipts rising by MAD 52.9 billion ($5.82 billion) versus a MAD 51.9 billion ($5.71 billion) increase in spending, according to the Treasury’s report on fiscal resources and expenditures.

Net revenues, after accounting for reimbursements, exemptions, and tax refunds, reached MAD 424.1 billion ($46.7 billion), exceeding Finance Law projections by 7.3% and rising 14.2% compared to 2024. 

Tax revenues accounted for over MAD 342 billion ($37.66 billion), a 14.7% increase, while non-tax revenues reached MAD 77.6 billion ($8.54 billion), up 13.6%.

Ordinary expenditures totaled MAD 348.7 billion ($38.4 billion) by the end of December, executing 98.5% of the planned budget and rising MAD 39.2 billion ($4.31 billion) from 2024. 

The increase reflected higher spending on goods and services, which grew by 15.7%, and a 22.3% rise in debt interest payments. 

Expenditure on subsidies, however, fell by 30%. The combination of revenue growth and controlled ordinary spending produced an ordinary surplus of MAD 75.5 billion ($8.31 billion), compared with MAD 61.8 billion ($6.80 billion) in the previous year.

Investment expenditures reached MAD 125.3 billion ($13.8 billion), an increase of MAD 7.8 billion ($860 million) from 2024, with a realization rate of 118.7% relative to Finance Law forecasts.

These results point to Morocco’s ability to balance growth in public spending with robust revenue performance, while also supporting fiscal stability and resilience amid ongoing economic challenges.