Morocco's budget deficit has shown signs of improvement, decreasing to 58.6 billion dirhams as of August 2026, compared to 59.5 billion dirhams during the same period last year. This development is primarily attributed to an increase in tax revenues, which include income tax, corporate tax, and value-added tax. The collection of these taxes reached 247.5 billion dirhams, representing a 10.3% increase and achieving a realization rate of 67.5%.
The tax revenues also included a significant contribution from non-tax revenues, which stood at 29.5 billion dirhams. This amount was mainly derived from dividends paid by public institutions and companies, totaling 11.7 billion dirhams. These dividends were distributed among various entities, including Bank Al-Maghrib, the National Land Registry, and the Office Chérifien des Phosphates. Additionally, innovative financing mechanisms contributed 9.9 billion dirhams to the budget.
On the expenditure side, ordinary expenses reached 268.2 billion dirhams as of August 2026, representing a realization rate of 70.7% and an increase of 26.2 billion dirhams compared to the same period in 2025. This rise in expenses was primarily due to an increase in goods and services expenditures by 11.4%, interest on debt by 9.1%, and compensation costs by 6.2%.
Investment expenditures also saw an increase, rising to 75.7 billion dirhams, representing an 11.4% increase compared to August 2025. This growth reflects a continued pace of public investment despite pressures on public finances. The realization rate of investment expenditures reached 65.9% compared to the budget forecasts.
In a positive development, the special treasury accounts showed a surplus of 4.9 billion dirhams, reversing a deficit of 4.5 billion dirhams in August 2025. This turnaround significantly contributed to alleviating pressure on the budget.
Morocco's foreign exchange reserves also reached a historic milestone, exceeding 500 billion dirhams. According to the latest report from Bank Al-Maghrib, the official reserves stood at 503 billion dirhams as of September 18, 2026, representing a 0.6% increase from the previous week and a 21% increase compared to the same period in 2025.
The improvement in budget and reserve figures reflects a positive trend in Morocco's economic situation. The government's efforts to enhance revenue collection and manage expenditures appear to be yielding results. The achievement of exceeding 500 billion dirhams in foreign exchange reserves is particularly noteworthy, indicating increased economic stability.
Key points
- Morocco's budget deficit decreased to 58.6 billion dirhams as of August 2026.
- Tax revenues increased by 10.3% to 247.5 billion dirhams.
- Foreign exchange reserves exceeded 500 billion dirhams for the first time.