Morocco’s budget deficit rose to MAD 21.1 billion by February 2025, marking a significant increase from MAD 3.8 billion the previous year. Gross revenues increased to MAD 56.6 billion, driven by rising direct and indirect taxes. However, ordinary expenses surged by 50.5%, leading to a negative ordinary balance of MAD 18.2 billion. Total expenditures rose to MAD 96 billion, with Special Treasury Accounts reflecting a positive balance.
As of February 2025, Morocco’s budget deficit has significantly escalated to MAD 21.1 billion ($2.1 billion), as reported by the General Treasury (TGR). This is a stark increase compared to the MAD 3.8 billion ($0.38 billion) deficit recorded during the same timeframe last year. The monthly financial report indicates that this deficit includes a favorable balance of MAD 14.2 billion ($1.42 billion) from Special Treasury Accounts and autonomously managed state services.
Gross ordinary revenues saw an increase, reaching MAD 56.6 billion ($5.55 billion), reflecting a 9.7% rise from the MAD 51.6 billion ($5.16 billion) reported in February 2024. This growth is attributed mainly to a 48.1% rise in direct taxes and a 7.1% increase in indirect taxes. Registration and stamp duties also increased by 2.8%. Conversely, customs duties fell by 6%, accompanied by a notable 58.5% drop in non-tax revenues.
On the expenditure front, ordinary expenses skyrocketed by 50.5%. This increase is largely due to a 49.6% rise in spending on goods and services, which was driven by a remarkable 130.2% increase in miscellaneous goods and services costs. Despite a minor decrease of 0.8% in personnel expenses, debt interest charges rose by 37.2%, and tax-related payouts surged by 363.4%. Compensation-related expenditures decreased by MAD 500 million ($50 million).
The negative ordinary balance for Morocco reached MAD 18.2 billion ($1.82 billion) by February 2025, a stark contrast to a positive balance of MAD 1.9 billion ($0.19 billion) from the prior year. Total general budget expenditures rose to MAD 96 billion ($9.6 billion), marking a year-on-year increase of 41.6%. This rise reflects a 52.2% increase in operating expenses, a modest enhancement of 1.3% in investment spending, and a substantial 73.9% escalation in budgeted debt charges.
Special Treasury Accounts accrued MAD 43.6 billion ($4.36 billion) in revenue, with expenditures totaling MAD 29.8 billion ($2.98 billion), resulting in a positive balance of MAD 13.8 billion ($1.38 billion).
In conclusion, Morocco’s financial landscape has sharply deteriorated in early 2025, with a remarkable increase in the budget deficit and significant fluctuations in revenues and expenditures. The increases in various tax revenues highlight a growing economy; however, substantial rises in expenses—particularly in goods and services—have outpaced these gains. Policymakers must address these challenges to stabilize fiscal health moving forward.
Original Source: www.moroccoworldnews.com
