Morocco’s budget deficit reached MAD 21.1 billion by February 2025, a significant rise from MAD 3.8 billion last year. Revenues increased to MAD 56.6 billion, mainly due to higher direct and indirect taxes. However, expenditures surged by 50.5%, leading to a negative ordinary balance of MAD 18.2 billion. Overall general budget expenditures rose to MAD 96 billion, reflecting considerable financial pressures on the nation.
Morocco’s Treasury has reported a concerning rise in the budget deficit, reaching MAD 21.1 billion (approximately $2.1 billion) by February 2025, a stark increase from the MAD 3.8 billion ($0.38 billion) deficit noted during the same timeframe the previous year. The recent monthly bulletin from the General Treasury of Morocco highlighted this deterioration, which incorporates a positive balance of MAD 14.2 billion ($1.42 billion) from Special Treasury Accounts and autonomously managed state services.
Gross ordinary revenues for February 2025 concluded at MAD 56.6 billion ($5.55 billion), marking a 9.7% increase from MAD 51.6 billion ($5.16 billion) in February 2024. This growth was significantly influenced by a dramatic 48.1% increase in direct taxes and a 7.1% rise in indirect taxes, alongside a 2.8% boost in registration and stamp duties. Conversely, these revenue gains were offset to some extent by a 6% decline in customs duties and a notable 58.5% drop in non-tax revenues.
On the expenditure side, ordinary expenses increased sharply by 50.5%. This rise was propelled by a 49.6% increase in spending on goods and services, largely driven by a staggering 130.2% rise in miscellaneous goods and services costs. There was, however, a slight 0.8% decrease in personnel expenses. Furthermore, debt interest charges escalated by 37.2%, with tax refunds, relief, and restitutions soaring by 363.4%. Compensation-related expenditures saw a reduction of MAD 500 million (around $50 million).
By February 2025, Morocco faced a negative ordinary balance of MAD 18.2 billion ($1.82 billion), contrasting sharply with the positive balance of MAD 1.9 billion ($0.19 billion) experienced a year earlier. Total general budget expenditures reached MAD 96 billion ($9.6 billion), illustrating a 41.6% increase year-over-year, which includes a 52.2% rise in operating expenses, a modest 1.3% hike in investment spending, and a significant 73.9% increase in budgeted debt charges.
Finally, Special Treasury Accounts demonstrated a revenue of MAD 43.6 billion ($4.36 billion) with expenditures of MAD 29.8 billion ($2.98 billion), resulting in a sound positive balance of MAD 13.8 billion ($1.38 billion).
In summary, Morocco’s budget deficit has sharply escalated by February 2025, reaching MAD 21.1 billion. While gross revenues have increased due to substantial rises in various tax categories, these gains have been overshadowed by significant spikes in ordinary expenses and a notable drop in certain non-tax revenues. The negative ordinary balance and substantial increase in total expenditures further underscore the financial challenges facing Morocco’s economy as it navigates these fiscal pressures.
Original Source: www.moroccoworldnews.com
