Morocco's Treasury deficit has decreased to 58.6 billion dirhams as of August 2026, compared to 59.5 billion dirhams during the same period in the previous year. This improvement of nearly 1 billion dirhams is attributed to a slight increase in revenues outpacing expenditures. The Treasury's situation report highlights that revenues rose by 25.5 billion dirhams, while expenditures increased by 24.6 billion dirhams. The better performance of special Treasury accounts also contributed to this positive trend.
The country's fiscal revenues have shown significant growth, with net fiscal revenues reaching 247.5 billion dirhams. This represents a realization rate of 67.5% compared to the finance law's projections. Non-fiscal revenues stood at 29.5 billion dirhams, bolstered by contributions from public establishments. Notably, Bank Al-Maghrib contributed 4.4 billion dirhams, and the OCP group contributed 4.1 billion dirhams. These figures indicate a positive trajectory in revenue collection.
On the expenditure side, ordinary charges amounted to 268.2 billion dirhams, with an execution rate of 70.7%. Investment expenditure reached 75.7 billion dirhams, marking an 11.4% increase year-over-year. The ordinary balance stood at 12.2 billion dirhams, indicating that current revenues cover current expenditures and partially finance investment without resorting to borrowing. This development suggests a cautious approach to fiscal management.
There is a discrepancy in the reported figures, with an initial report from the General Treasury of the Kingdom stating a deficit of 56.9 billion dirhams as of August. The difference in figures can be attributed to the scope of the data, as the situation report of the Treasury's charges and resources includes certain balance items not presented similarly in the monthly Treasury monitoring.
Despite the improvement in the Treasury's deficit, the country's fiscal trajectory remains challenging. Preparations for the 2027 finance bill aim to reduce the deficit to 3% of the gross domestic product. However, Fitch's projections indicate a deficit of 4% for 2026, up from 3.5% in 2025, largely due to increased energy costs. This divergence in projections is expected to be a key discussion point in the upcoming budget exercise.
The Ministry of Economy and Finance will likely need to navigate these challenges while presenting the 2027 budget. The budget discussions will involve balancing fiscal consolidation with the need to support economic growth. Morocco's economic performance and ability to manage its finances effectively will be closely watched by investors and rating agencies.
The government's commitment to achieving a lower deficit will be crucial in maintaining macroeconomic stability. Morocco's budget management reflects efforts to enhance revenue collection and optimize public spending. The focus on investment expenditure, which has seen an 11.4% increase, suggests an intent to stimulate economic growth while maintaining fiscal discipline.
Key points
- The Treasury deficit decreased to 58.6 billion dirhams as of August 2026.
- Revenues rose by 25.5 billion dirhams, while expenditures increased by 24.6 billion dirhams.
- The 2027 budget aims to reduce the deficit to 3% of the gross domestic product.
