Over the first five months of the year, government spending on compensation subsidies has dropped sharply, falling by nearly one-third compared to the same period last year. According to the latest figures from the General Treasury, these expenditures totaled just 3.1 billion dirhams by the end of May—a significant 31.9% decrease from the same point in 2024.
So far, this spending accounts for only 18% of the total annual allocation outlined in the 2025 Finance Law. The pace of disbursement remains sluggish in this area, even as other budget categories are seeing marked increases.
Operating expenses, for example, have reached 143 billion dirhams. Of that, payroll costs alone have consumed 73.1 billion, up 11.2% from the previous year. Spending on goods and services has also risen, increasing by 18.2% to reach 38.5 billion. Meanwhile, general operating charges have surged dramatically—up 120.5%—to a total of 23 billion.
On the revenue side, the government has seen a notable spike in tax-related reimbursements and credits covered by the general budget. These payments jumped by 75.8%, driven primarily by a rise in domestic VAT refunds, which amounted to 5.42 billion dirhams. Additionally, corporate tax refunds reached 2.57 billion, further contributing to the increase.
