Agadir – Morocco's financial landscape has shown marked improvement as the nation's budget deficit decreased to MAD 24 billion (approximately $2.4 billion) by the end of June 2026. This figure reflects a notable reduction from MAD 30.8 billion ($3.1 billion) during the same timeframe in the previous year, according to the Ministry of Economy and Finance. The significant contraction in the budget deficit can be attributed to a robust increase in government revenues, which rose by MAD 30 billion, outpacing the MAD 23.2 billion increase in expenditures, as highlighted in the latest report on the Treasury's revenue and expenditure situation (SCRT).
By the end of June, total revenues had reached MAD 225.2 billion, after taking into account tax refunds, rebates, and reimbursements. This achievement represents an execution rate of 52% of the projections established under the 2026 Finance Law. Tax revenues remained the primary driver of the Treasury's income, amounting to over MAD 197.7 billion, which signifies an impressive year-on-year growth of 11.8%, with a corresponding execution rate of 54%. Furthermore, tax refunds and rebates, alongside reimbursements from local authorities, saw an increase of nearly MAD 3 billion, culminating in a total of MAD 17.3 billion.
In addition to tax revenues, non-tax revenues also experienced remarkable growth, soaring by 55.3% to reach MAD 24.9 billion. This category of revenue included MAD 7 billion generated from public establishments and companies, with Bank Al-Maghrib contributing MAD 4.2 billion and the National Agency for Land Conservation, Cadastre and Mapping (ANCFCC) providing MAD 2.5 billion. Innovative financing mechanisms also played a vital role, generating MAD 9.9 billion, while miscellaneous ministry revenues accounted for an additional MAD 6.9 billion.
On the expenditure front, ordinary spending climbed to MAD 203.9 billion by the end of June, reflecting an execution rate of 53.7% and a year-on-year increase of 14.7%. This rise in expenditures was primarily driven by enhanced spending on goods and services, which surged by 14.9%, along with debt interest charges that escalated by 16.3%, and compensation costs that increased by 10%. The interplay between ordinary revenues and expenditures resulted in an ordinary surplus of MAD 21.3 billion, compared to MAD 17.5 billion during the same period in 2025.
Investment expenditures also demonstrated significant growth, totaling MAD 59.8 billion, marking a 20.2% rise in comparison to the first half of 2025. The execution rate for these expenditures stood at 52.1% of the annual forecasts outlined in the 2026 Finance Law.
As reported by moroccoworldnews.com.
