Morocco's Budget Deficit Climbs to 56.9 Billion Dirhams Through August 2026

Morocco's fiscal position showed continued pressure through August 2026, with the Treasury General of the Kingdom (TGR) reporting a budget deficit of 56.9 billion dirhams (MMDH), compared to 54.1 billion dirhams during the corresponding period in 2025.

The deficit calculation incorporates a positive balance of 16.8 billion dirhams generated by Special Treasury Accounts (CST) and Autonomous State-Managed Services (SEGMA), according to the TGR's latest Monthly Bulletin of Public Finance Statistics.

Revenue Growth Remains Robust

Ordinary revenues reached 286.6 billion dirhams, representing a 5.5% year-over-year increase. This growth was primarily driven by:

• Direct taxes: +12.7%
• Customs duties: +8.8%
• Indirect taxes: +8.0%
• Registration and stamp duties: +12.6%

However, these gains were partially offset by a sharp 27.4% decline in non-tax revenues.

Expenditure Surge Outpaces Income

General budget expenditures climbed to 397.5 billion dirhams by end-August, marking a 10.4% increase. The spending breakdown shows:

• Operating expenses: +13.2%
• Investment expenditures: +8.2%
• Budgeted debt charges: +3.8%

The rise in debt servicing costs reflects a 4.1% increase in principal repayments (amortizations) to 37.3 billion dirhams, combined with a 3.4% uptick in debt interest payments to 35 billion dirhams.

Debt Composition Shifts

The increase in principal repayments stems from a 7.3 billion dirham rise in external debt amortizations, which was partially counterbalanced by a 5.8 billion dirham decrease in domestic debt repayments.

Budget Execution Metrics

As of August 2026, spending commitments—including those not subject to prior commitment approval—totaled 609.1 billion dirhams. This represents an overall commitment rate of 61%, up from 59% in August 2025, with an execution rate of 87% versus 86% the previous year.

Special Accounts Performance

Special Treasury Accounts recorded revenues of 147.8 billion dirhams, which includes 26 billion dirhams transferred from the common charges chapter for investment purposes. Expenditures reached 131.9 billion dirhams, incorporating 5 billion dirhams allocated for tax refunds, rebates, and restitutions. The combined balance for these accounts stands at 15.9 billion dirhams.

Meanwhile, SEGMA generated revenues of 2.013 billion dirhams (down 2.6%) while expenditures increased 13.5% to 1.125 billion dirhams.

Budget Realization Rates

Through August 2026, fiscal execution shows:

• Ordinary revenues: 68.3% of finance law projections
• Ordinary expenditures: 72% executed
• Investment expenditures: 57.6% disbursed

The widening deficit underscores the challenge facing Moroccan policymakers as spending growth continues to outstrip revenue collection, despite strong performance in key tax categories.