The financial execution of local government budgets in Morocco has resulted in a surplus of 11 billion dirhams as of the end of November 2024, according to the General Treasury of the Kingdom (TGR). This is a substantial increase compared to the 5.7 billion dirhams recorded during the same period in 2023.
This surplus, which includes a positive balance of 1.85 billion dirhams from special accounts and annexed budgets, is allocated to cover expenses scheduled for December 2024 and the following year. The TGR emphasizes that these funds are intended for expenditures that have been planned but not yet paid, ensuring the smooth functioning of various public services.
Ordinary revenues for local governments have grown by 14.6 percent compared to November 2023, reaching 46.2 billion dirhams. This growth is attributed to an increase in transferred revenues, revenues managed by the state, and those directly handled by local governments. Revenues from taxes alone totaled 38.3 billion dirhams, up by 17.5 percent from the previous year.
On the expenditure side, ordinary spending by local governments reached 24.1 billion dirhams by the end of November 2024, reflecting a rise of 4.8 percent. This was primarily driven by increased spending on goods and services, personnel costs, and interest on debt.
The overall surpluses from local government budgets, which include previous years’ balances, now stand at 59.4 billion dirhams. These funds are being utilized to cover both ongoing and outstanding expenses from previous years, as well as obligations incurred during 2024 that remain unpaid.
Tax revenues have been a significant contributor to this financial performance. Direct taxes rose by 16.6 percent, while indirect taxes increased by 18.1 percent. Additionally, resources managed by the state on behalf of local governments grew by 22.5 percent, reaching 9.3 billion dirhams. This increase is attributed to higher collections from communal service taxes, professional taxes, and property taxes.
Local governments also generated 9.248 billion dirhams in revenues directly under their management, marking a 10.9 percent increase from the previous year. These revenues primarily come from urban land taxes, public domain occupancy fees, construction operation taxes, and other municipal levies.
The financial structure of local government resources has shifted slightly compared to the previous year. There has been an increase in the share of resources managed by the state, alongside a reduction in the proportion of resources managed directly by local governments and those transferred to them.
Communes remain a dominant force in fiscal performance, accounting for 59.4 percent of the overall surplus generated by local governments. This underscores their crucial role in Morocco’s broader economic and administrative framework.
