Morocco’s budget deficit has surged to MAD 21.1 billion ($2.1 billion) by February 2025, up from MAD 3.8 billion a year prior. This is linked to a dramatic rise in ordinary expenses amid increased tax revenues, though non-tax revenues declined sharply. The negative ordinary balance stood at MAD 18.2 billion, contrasting with the previous year’s surplus.
Morocco’s Treasury has reported a significant budget deficit increase to MAD 21.1 billion ($2.1 billion) by February 2025. This is a sharp rise from MAD 3.8 billion ($0.38 billion) during the same period last year. The General Treasury’s monthly bulletin highlights a positive balance of MAD 14.2 billion ($1.42 billion) from Special Treasury Accounts and autonomously managed state services, which mitigated some deficit effects.
Gross ordinary revenues have reached MAD 56.6 billion ($5.55 billion), an increase of 9.7% compared to MAD 51.6 billion ($5.16 billion) in February 2024. This revenue growth is attributed to a 48.1% rise in direct taxes and a 7.1% increase in indirect taxes. Additionally, registration and stamp duties rose by 2.8%, although offset by a 6% decrease in customs duties and a 58.5% decline in non-tax revenues.
On the expenditure front, ordinary expenses rose dramatically by 50.5%, primarily due to a 49.6% increase in spending on goods and services, bolstered by a massive 130.2% rise in miscellaneous goods and services costs. Personnel expenses saw a slight decrease of 0.8%. Debt interest charges rose by 37.2%, while tax refunds surged by 363.4%, although compensation-related expenditures fell by MAD 500 million ($50 million).
By February 2025, Morocco’s negative ordinary balance reached MAD 18.2 billion ($1.82 billion), contrasting sharply with a positive balance of MAD 1.9 billion ($0.19 billion) the previous year. Total general budget expenditures hit MAD 96 billion ($9.6 billion), a 41.6% increase year-over-year, driven by a 52.2% rise in operating expenses, a modest 1.3% rise in investment spending, and a notable 73.9% jump in budgeted debt charges.
Special Treasury Accounts reported revenues of MAD 43.6 billion ($4.36 billion) and expenditures of MAD 29.8 billion ($2.98 billion), resulting in a positive balance of MAD 13.8 billion ($1.38 billion).
Morocco’s budget deficit shows a concerning increase, highlighting financial pressures from rising expenditure and declining revenues in certain sectors. While gross revenues have improved, significant surges in ordinary spending and debt interest charges underscore the need for careful fiscal management moving forward. Special Treasury Accounts continue to provide some offset to the deficit, reflecting a complex financial landscape for the country.
Original Source: www.moroccoworldnews.com
