RABAT, July 27 – Morocco’s budget deficit narrowed to MAD 24 billion ($2.4 billion) by the end of June 2026, compared with MAD 30.8 billion ($3.1 billion) during the same period a year earlier, as stronger government revenues more than offset higher public expenditure.
According to the Ministry of Economy and Finance’s latest Treasury Revenue and Expenditure Situation (SCRT) report, total revenues increased by MAD 30 billion during the first half of the year, exceeding the MAD 23.2 billion rise in government spending and contributing to an improved fiscal balance.
Treasury revenues reached MAD 225.2 billion after accounting for tax refunds, rebates and reimbursements, representing 52% of the revenue target set under the 2026 Finance Law.
Tax receipts remained the government’s primary source of income, rising 11.8% year-on-year to more than MAD 197.7 billion, equivalent to 54% of the annual revenue forecast.
Meanwhile, tax refunds, rebates and reimbursements, including amounts allocated to local authorities, increased by nearly MAD 3 billion to MAD 17.3 billion.
Non-tax revenues posted even stronger growth, climbing 55.3% year-on-year to MAD 24.9 billion.
The ministry said these receipts included MAD 7 billion transferred from public institutions and state-owned enterprises, including MAD 4.2 billion from Bank Al-Maghrib and MAD 2.5 billion from the National Agency for Land Conservation, Cadastre and Mapping (ANCFCC).
Additional non-tax revenues were generated through innovative financing mechanisms, which contributed MAD 9.9 billion, while miscellaneous receipts collected by government ministries totalled MAD 6.9 billion.
On the expenditure side, ordinary government spending reached MAD 203.9 billion, representing 53.7% of the annual budget allocation and an increase of 14.7% compared with the first half of 2025.
The rise was driven primarily by higher expenditure on goods and services, which increased 14.9%, while debt interest payments rose 16.3%. Compensation spending also expanded by 10% during the period.
The stronger revenue performance resulted in an ordinary budget surplus of MAD 21.3 billion, up from MAD 17.5 billion recorded during the corresponding period last year.
Investment spending also accelerated, reaching MAD 59.8 billion, a 20.2% increase compared with the first six months of 2025. The ministry said investment expenditure represented 52.1% of the annual allocation under the 2026 Finance Law.
The latest fiscal figures indicate that Morocco continues to strengthen its public finances through improved revenue mobilisation while maintaining elevated investment spending to support economic growth and infrastructure development.
