Rabat – Morocco’s treasury covered most of its financing needs through the local market at the beginning of 2026, according to a report by Attijari Global Research (AGR).
AGR indicated that the treasury’s net financing requirement reached MAD 15.5 billion ($1.7 billion) in January 2026, with 91% of this amount raised on the domestic market.
The reliance on domestic funding reflects the government’s strategy of prioritizing internal financial resources while limiting external borrowing.
The financing need came as the budget deficit widened during the month. Figures cited by AGR showed that the deficit stood at MAD 9.6 billion ( $1.05 billion), an increase of MAD 2.8 billion ($305 million) from the same period in 2025.
AGR noted that the budget deficit increased because the revenues decreased at a higher rate than public spending.
Overall expenditures remained nearly stable year-on-year, increasing slightly by around 0.2% compared to January 2025.
This stability was largely the result of a MAD 9.2 billion ($1.0 billion) decline in spending on goods and services, offset by an increase of about MAD 2 billion ($218 million) in investment spending.
Meanwhile, the Treasury’s Special Accounts recorded a surplus of MAD 8.3 billion ($905 million), compared to MAD 15.8 billion ($1.72 billion) during the same period last year.
Read also: Treasury Gross Financing Requirement Projected at MAD 144 Billion by End-2026
On the revenue side, ordinary revenues declined by 8.3%, equivalent to MAD 2.7 billion ($294 million), mainly due to a drop in income tax receipts estimated at MAD 2.5 billion ($273 million).
As a result, the ordinary balance recorded a deficit of MAD 2.9 billion ($316 million), marking the first such deficit since February 2025.
Looking ahead, AGR estimates that Morocco’s Treasury will face gross financing needs of approximately MAD 144.1 billion ($15.7 billion) for the entire year of 2026.
Of this total, around MAD 114.9 billion ($12.5 billion) is expected to be raised on the domestic market, while about MAD 29.2 billion ($3.2 billion) would come from external financing.
According to AGR, this financing structure highlights Morocco’s reliance on the domestic market to manage fiscal needs while maintaining a balanced level of external debt.
