Morocco’s Fiscal Challenges: Budget Deficit Climbs to MAD 35.2 Billion

Tuesday 13 August 2024 - 14:00

Rising Government Spending Overshadows Revenue Gains

As of July 2024, Morocco's budget deficit has expanded to MAD 35.2 billion ($3.56 billion), up from MAD 27.7 billion ($2.8 billion) in the same period last year, according to the Treasury General of the Kingdom (TGR).

The deficit includes a positive balance of MAD 16.3 billion from special treasury accounts (CST) and autonomously managed state services (SEGMA), based on TGR's latest Monthly Public Finance Statistics Bulletin.

Gross ordinary revenues increased by 11.4%, reaching MAD 202.3 billion. This was driven by a 13.3% rise in direct taxes, a 10.8% increase in customs duties, a 12.4% uptick in indirect taxes, and a 7.8% boost in non-tax revenues.

On the expenditure front, the General Budget saw spending reach MAD 307.2 billion, a 4.5% rise from 2023. Operating expenses increased by 6.5%, and investment expenditures surged by 11.3%, despite a 3.8% decline in budgeted debt charges.

The Special Treasury Accounts (CST) reported revenues of MAD 104.6 billion, including MAD 20.7 billion from general budget investment contributions, up from MAD 17.4 billion the previous year. CST expenditures were MAD 88.9 billion, with MAD 2.7 billion allocated for tax refunds and deductions, leaving an overall CST balance of MAD 15.7 billion.

Revenues for SEGMA fell by 12.9%, totaling MAD 1.392 billion, while spending decreased by 2.6%, amounting to MAD 763 million. SEGMA refers to independently managed government services, like certain public institutions.