Morocco’s budget deficit surged to MAD 21.1 billion by February 2025, significantly higher than last year’s MAD 3.8 billion. Gross ordinary revenues reached MAD 56.6 billion, influenced by rising taxes, though expenditure increased by 50.5%. The resulting negative balance of MAD 18.2 billion starkly contrasts with the prior year’s surplus.
Morocco’s Treasury experienced a substantial rise in its budget deficit, reaching MAD 21.1 billion ($2.1 billion) by February 2025, according to the General Treasury’s recent report. This figure represents a significant increase compared to the MAD 3.8 billion ($0.38 billion) deficit reported during the same timeframe the previous year. The monthly bulletin on public finance statistics indicates that this deficit includes a positive balance of MAD 14.2 billion ($1.42 billion) from Special Treasury Accounts and autonomously managed state services.
Gross ordinary revenues increased to MAD 56.6 billion ($5.55 billion), a 9.7% rise from MAD 51.6 billion ($5.16 billion) in February 2024. This growth is primarily attributed to a notable 48.1% increase in direct taxes and a 7.1% rise in indirect taxes. Additionally, registration and stamp duties saw a 2.8% uptick. However, these gains were somewhat mitigated by a 6% decline in customs duties and a sharp 58.5% decrease in non-tax revenues.
On the expenditure front, ordinary expenses surged by 50.5%, largely due to a 49.6% increase in spending on goods and services. This spike was propelled by a staggering 130.2% rise in miscellaneous goods and services costs, even as personnel expenses saw a slight 0.8% decline. Furthermore, debt interest charges grew by 37.2%, and tax refunds, relief, and restitutions skyrocketed by 363.4%. Compensation-related expenditures experienced a decrease of MAD 500 million ($50 million).
As a result of the revenues collected and expenses issued, Morocco recorded a negative ordinary balance of MAD 18.2 billion ($1.82 billion) by February 2025, marking a sharp decline from the positive balance of MAD 1.9 billion ($0.19 billion) reported a year earlier. Total general budget expenditures reached MAD 96 billion ($9.6 billion) by February 2025, reflecting a 41.6% year-over-year increase. This increase is attributed to a 52.2% rise in operating expenses, a modest 1.3% rise in investment spending, and a significant 73.9% jump in budgeted debt charges.
Special Treasury Accounts recorded revenues of MAD 43.6 billion ($4.36 billion), with expenditures amounting to MAD 29.8 billion ($2.98 billion), culminating in a positive balance of MAD 13.8 billion ($1.38 billion).
In conclusion, Morocco’s budget deficit has escalated sharply to MAD 21.1 billion, marking a drastic increase from the previous year. While gross ordinary revenues have risen due to increases in taxes and duties, the growth in expenditures, particularly in operating expenses and debt charges, has significantly impacted the fiscal landscape. The negative ordinary balance underscores growing economic challenges as Morocco navigates its financial obligations.
Original Source: www.moroccoworldnews.com
