The execution of local government budgets in Morocco resulted in a total surplus of 7.4 billion dirhams (MMDH) by the end of May, a significant increase from the 3.3 billion dirhams recorded the previous year, according to the Treasury General of the Kingdom (TGR).

This outcome includes a positive balance of 1.01 billion dirhams from special accounts and auxiliary budgets, the TGR noted in its latest Monthly Bulletin of Local Finance Statistics. The overall surplus is intended to cover expenditures planned and to be paid throughout 2024.

Auxiliary budgets and special accounts managed by local governments generated positive balances of 1 million dirhams and 1.009 billion dirhams respectively. This contrasts with a zero balance for auxiliary budgets and a positive balance of 475 million dirhams for special accounts by the end of May 2023.

The surplus generated by local government budgets by the end of May 2024, combined with loan receipts of 514 million dirhams, enabled the repayment of 1.37 billion dirhams in debt principal and the replenishment of surpluses to 6.5 billion dirhams.

Regarding regular revenues, local governments amassed 19.7 billion dirhams, marking a 17.3% increase compared to the end of May 2023. This rise is attributed to a 13.7% increase in transferred revenues, a 46.9% jump in revenues managed by the state, and a 9.8% increase in revenues managed by local governments.

During the same period, the total expenditures by local governments (including ordinary expenses, investment spending, and debt principal repayments) amounted to 14.7 billion dirhams, a 3.9% decrease from the previous year. Of these, ordinary expenses constituted 68.3%.

Overall, the total surpluses generated by local government budgets reached 58.1 billion dirhams, including surpluses from previous years and the 2024 surplus (7.4 billion dirhams). These surpluses are designated to cover planned and incurred expenses from previous years that have not yet been paid, as well as expenses incurred in 2024 that remain unpaid. The remaining funds are available for paying due expenses such as salaries, utilities, rents, debt interest, and delegated management costs.

Municipalities account for 55.7% of the total surpluses of local governments.