Morocco's local authorities have recorded a global surplus of 10 billion dirhams as of August 2026, according to the General Treasury of the Kingdom (TGR). This represents a slight increase from 9.61 billion dirhams during the same period in 2025. The surplus is primarily attributed to the positive execution of their budgets, with a significant contribution from ordinary revenues.
The TGR's latest Monthly Bulletin of Local Finances Statistics reveals that the surplus includes 2.25 billion dirhams from special accounts and annex budgets. This amount is expected to cover committed expenses to be paid during the 2026 fiscal year. As of August, ordinary revenues of local authorities reached 39.3 billion dirhams, marking a 9.9% annual increase.
The growth in ordinary revenues is largely driven by a 15% increase in fiscal receipts, which totaled 34.7 billion dirhams as of August 2026. This rise is attributed to a 20.8% increase in direct taxes and a 10% increase in indirect taxes. Fiscal receipts now account for 88.1% of the total revenues of local authorities.
Transferred resources from the state to local authorities increased by 8.2% to 22.4 billion dirhams. This growth is primarily due to a 12.2% rise in the value-added tax (VAT) share, representing an additional 1.66 billion dirhams. Additionally, regions saw a 39.1% increase in their share of corporate tax and income tax revenues, amounting to an extra 1.41 billion dirhams.
The VAT remains a crucial component of local financing, accounting for 39% of local authorities' revenues. Resources managed by the state on behalf of local authorities reached 8.75 billion dirhams, up 6.5% from the previous year. Ordinary expenditures, however, grew at a more moderate pace of 2.8%, reaching 18.9 billion dirhams.
The increase in ordinary expenditures includes a 3.1% rise in personnel expenses and a 3% increase in spending on goods and services. Despite this, local authorities' finances demonstrate a positive balance as of August 2026. The TGR's data suggests a favorable trend in local finances, driven by increased revenues and efficient resource management.
The positive trend in local finances is expected to continue, with a focus on optimizing resource allocation and enhancing fiscal sustainability. As of August 2026, local authorities' financial performance indicates a strong surplus, which will likely support their budgetary commitments for the remainder of the fiscal year.
Key points
- Moroccan local authorities achieved a 10 billion dirham surplus as of August 2026.
- Fiscal receipts of local authorities increased by 15% to 34.7 billion dirhams.
- Transferred resources from the state to local authorities grew by 8.2% to 22.4 billion dirhams.
