Morocco’s budget deficit stood at MAD 50.5bn ($5.1bn) at the end of July, down from MAD 54.7bn a year earlier, according to the Ministry of Economy and Finance.
The improvement came as government revenues grew faster than spending during the first seven months of 2026. Revenues increased by MAD 28.2bn, compared with a MAD 23.9bn rise in expenditure, the ministry said in its latest report on Treasury resources and spending.
Total revenues reached about MAD 253.8bn, after tax refunds, reductions and rebates. That represents 58.6% of the amount forecast under the 2026 Finance Law.
Tax revenues rose by 10.9% to more than MAD 223.8bn, reaching 61.1% of the annual target. Tax refunds, reductions and exemptions, including those borne by local authorities, increased by about MAD 3.6bn to MAD 19.2bn.
Non-tax revenues reached MAD 27bn by the end of July. Public institutions and state-owned companies contributed MAD 9.5bn, including MAD 4.3bn from Bank Al-Maghrib, MAD 2.5bn from the National Agency for Land Conservation, Cadastre and Cartography, and MAD 2.1bn from OCP Group.
Innovative financing mechanisms generated a further MAD 9.9bn, according to the ministry.
Spending rises
Ordinary spending reached MAD 242.6bn, up MAD 30.1bn from the same period in 2025. This was equivalent to 63.9% of the amount budgeted for the year.
The increase was mainly driven by higher spending on goods and services, which rose by 14.4%, debt interest payments, up 14%, and compensation costs, which increased by 10.8%.
As a result, the ordinary balance stood at MAD 11.1bn, compared with MAD 13.1bn a year earlier.
Investment spending also increased. It reached MAD 69.3bn by the end of July, up 13.9% from the same period in 2025. The execution rate stood at 60.4% of the investment spending planned under the 2026 Finance Law.
Meanwhile, special Treasury accounts recorded a surplus of MAD 7.7bn, reversing a deficit of MAD 7bn at the end of July 2025.
The Treasury’s position report compares the implementation of the 2026 Finance Law with the results recorded during the same period a year earlier.
Unlike the General Treasury’s purely accounting-based position, the Treasury resources and spending report follows international public finance statistics standards. It tracks economic transactions during the budget period, including ordinary revenues, ordinary spending, investment spending, the budget deficit, financing needs and the funding raised to cover them.
