Morocco's public finances have demonstrated a generally controlled evolution as of August 2026, marked by a slight decline in the budget deficit compared to the same period in 2025. According to the Ministry of Economy and Finance, this improvement is set against a favorable macroeconomic backdrop, characterized by a significant enhancement in the 2025-2026 agricultural campaign and a strengthening of internal growth drivers. The ministry's recent publication on the situation of the Treasury's charges and resources for the first eight months of 2026 highlights that favorable rainfall has led to a substantial improvement in the agricultural campaign.
The agricultural campaign 2025-2026 has seen a notable improvement, with initial estimates indicating a cereal harvest of 90 million quintals. This has contributed to a significant increase in the agricultural value added, which rose by 18.4% in the first quarter of 2026, compared to 8.1% in the same period of 2025. The Ministry of Economy and Finance expects this improvement to have a positive impact on non-agricultural activities, driven by increased rural incomes and support for household consumption. The ministry also notes that the slowdown in non-agricultural activities observed in the first quarter is largely due to temporary factors, such as severe weather conditions.
The Ministry of Economy and Finance reports that available conjunctural indicators show a strengthening of activity in several sectors, including construction, industry, and energy. This positive trend is occurring in a context of sustained domestic demand, which increased by 6.5% in the first quarter, contributing 6.9 points to growth. This growth is driven by both household consumption, which rose by 4.6%, and a dynamic investment, which increased by 10.8%. The execution of the Finance Law as of August 2026 shows sustained mobilization of revenues, particularly fiscal revenues, alongside continued budgetary effort in support of incomes, social policies, and public investment.
The situation of the Treasury's charges and resources as of August 2026 reveals a budget deficit of 58.6 billion dirhams, compared to 59.5 billion dirhams in the same period of 2025. This slight improvement is due to a progression in revenues (25.5 billion dirhams) greater than that of expenditures (24.6 billion dirhams), combined with a significant improvement in the balance of special Treasury accounts. Revenues, on a net basis of refunds, deductions, and fiscal restitutions, have shown a realization rate of 64.8% compared to Finance Law forecasts. They have increased by nearly 25.5 billion dirhams (10%) compared to August 2025.
Fiscal revenues have recorded a realization rate of 67.5% and a progression of 23.2 billion dirhams (10.3%) compared to the same period in 2025. Refunds, deductions, and fiscal restitutions, including the share borne by territorial collectivities, have increased by 3.3 billion dirhams, reaching 19.6 billion dirhams. Non-fiscal revenues have reached 29.5 billion dirhams, mainly coming from payments made by public establishments and enterprises, totaling 11.7 billion dirhams. These include 4.4 billion dirhams from Bank Al-Maghrib, 2.5 billion dirhams from the National Land Conservation, Cadastre, and Cartography Agency, and 4.1 billion dirhams from the Cherifian Phosphates Office.
Ordinary expenditures have reached 268.2 billion dirhams as of August 2026, showing a realization rate of 70.7% and an increase of 26.2 billion dirhams (10.8%) compared to August 2025. This evolution is mainly due to the increase in expenditures for goods and services, which rose by 22.5 billion dirhams (11.4%), interest on debt, which increased by 2.9 billion dirhams (9.1%), and compensation charges, which rose by 807 million dirhams (6.2%). The increase in personnel expenditures reflects the budgetary impact of measures decided within the framework of social dialogue.
The charges of interest have recorded a realization rate of 83.5% as of August. Their evolution reflects an increase in interest on domestic debt by 2.2 billion dirhams and an increase of 651 million dirhams in external debt interest. Compensation charges have reached 13.8 billion dirhams, showing a realization rate of 99.4% and an increase of 807 million dirhams (6.2%) compared to August 2025. This improvement in public finances is a positive sign for Morocco's economic prospects.
Key points
- Morocco's budget deficit decreased slightly to 58.6 billion dirhams as of August 2026, compared to 59.5 billion dirhams in the same period of 2025.
- The country's agricultural sector has shown significant improvement, with a cereal harvest of 90 million quintals and a 18.4% increase in agricultural value added in the first quarter of 2026.
- Domestic demand has sustained growth, increasing by 6.5% in the first quarter, driven by household consumption and investment.
