Morocco’s budget deficit reached MAD 21.1 billion ($2.1 billion) by February 2025, significantly higher than MAD 3.8 billion in 2024. Gross ordinary revenues rose by 9.7% to MAD 56.6 billion, driven by increased taxes, albeit offset by declines in customs duties and non-tax revenues. Total expenditures climbed 41.6% to MAD 96 billion, reflecting rising operating costs and debt charges, while Special Treasury Accounts showed a positive balance of MAD 13.8 billion.
Morocco’s Treasury has reported a substantial increase in its budget deficit, amounting to MAD 21.1 billion ($2.1 billion) at the end of February 2025. This figure signifies a marked decline from the MAD 3.8 billion ($0.38 billion) deficit recorded during the same period the previous year. The latest financial statistics indicate that this deficit includes a positive balance of MAD 14.2 billion ($1.42 billion) contributed by Special Treasury Accounts and state services.
Moreover, gross ordinary revenues have risen to MAD 56.6 billion ($5.55 billion), indicating a 9.7% increase from MAD 51.6 billion ($5.16 billion) reported in February 2024. This revenue growth is primarily driven by a considerable 48.1% increase in direct tax collections and a 7.1% rise in indirect taxes, along with a 2.8% increase in registration and stamp duties. However, offsets include a 6% decrease in customs duties and a significant 58.5% decline in non-tax revenues.
On the expenditure front, ordinary expenses surged 50.5% due to a 49.6% rise in spending on goods and services. This spike is largely attributed to a staggering 130.2% rise in costs associated with miscellaneous goods and services, despite a slight 0.8% decrease in personnel expenditures. Additionally, debt interest payments have increased by 37.2%, and the costs related to tax refunds and refunds have seen an alarming increase of 363.4%.
In summary, Morocco has recorded a negative ordinary balance of MAD 18.2 billion ($1.82 billion) by February 2025, contrasting sharply with a positive balance of MAD 1.9 billion ($0.19 billion) from a year earlier. Total general budget expenditures also escalated to MAD 96 billion ($9.6 billion), representing a year-over-year increase of 41.6%, which reflects a 52.2% rise in operating costs, a modest 1.3% increase in investment, and a significant 73.9% jump in budgeted debt payments. Moreover, Special Treasury Accounts witnessed revenues of MAD 43.6 billion ($4.36 billion), with expenditures at MAD 29.8 billion ($2.98 billion), leading to a positive balance of MAD 13.8 billion ($1.38 billion).
The financial affairs of Morocco reveal a concerning trend with the budget deficit widening significantly compared to previous years. While revenue sources show potential for growth, the steep increase in expenditures, particularly in goods and services and debt charges, raises questions about fiscal sustainability. Monitoring these developments will be crucial for future economic stability.
Original Source: www.moroccoworldnews.com
