Morocco's Treasury deficit narrows to 48.2 billion dirhams by end of July

Morocco's Treasury announced a fiscal deficit of 48.2 billion dirhams by the end of July 2026. This figure represents an improvement compared to the 53.7 billion dirham deficit recorded during the same period in 2025. The monthly bulletin on public finance statistics for July 2026 highlighted that the deficit calculation incorporates a positive balance of 19.4 billion dirhams from special Treasury accounts and independently managed state services. This contrasts sharply with a negative balance of 4.8 billion dirhams observed a year earlier.

The ordinary balance, derived from collected revenues and expenditures, stood at 4.5 billion dirhams. This is a decrease from the positive ordinary balance of 16.5 billion dirhams recorded in the previous year. The shift occurred amidst an 8.3 percent rise in ordinary revenues and a 14.2 percent increase in ordinary expenditures. Overall government spending saw a 13.3 percent increase, driven by a 14.2 percent rise in ordinary expenses and a 10.2 percent growth in investment expenditures, which climbed from 65.4 billion dirhams to 72 billion dirhams between July 2025 and July 2026.

The Treasury attributed the rise in ordinary expenses to several factors. Spending on goods and services increased by 14.3 percent, largely due to a 10.4 percent rise in personnel costs and a 19.9 percent increase in other goods and services expenses. Additionally, debt servicing costs grew by 2.7 percent, and compensation expenditures saw a significant 65 percent increase. The overall commitment rate for expenditures reached 58 percent, with the expenditure issuance rate at 85 percent, consistent with the previous year's figures. To cover financing needs of 54.1 billion dirhams, supplemented by 26.8 billion dirhams in net external financing, the Treasury relied on domestic financing amounting to 27.4 billion dirhams.