Morocco keeps budget deficit in check despite rising spending in first half of 2025

Morocco’s budget deficit remained within manageable limits during the first half of 2025,despite an increase in public spending,according to new figures released by the General Treasury of the Kingdom (TGR).

As of the end of June,the deficit stood at 24.8 billion dirhams,a level consistent with the targets set in the 2025 Finance Law.

The report shows that total state resources reached 393 billion dirhams,representing 59.7% of the annual forecast. Ordinary revenues,excluding loans,amounted to 319.8 billion dirhams,while expenditures,excluding debt amortization,totaled 344.6 billion dirhams.

When loan revenues of 73.2 billion dirhams and debt repayments of 34.5 billion dirhams are taken into account,the Treasury recorded a net surplus of 13.9 billion dirhams in available resources over expenditures. This reflects the government’s continued emphasis on prudent debt management.

The structure of state revenues remains heavily reliant on ordinary income,which accounted for more than half of total resources. Medium- and long-term borrowing contributed nearly one-fifth,while special Treasury accounts made up just over a quarter. Autonomously managed state services contributed a marginal share.

On the expenditure side,total spending reached 379.1 billion dirhams,or 52.6% of the annual projection. The report notes that ordinary expenditures continue to dominate the budget,underscoring the structural weight of recurrent spending in Morocco’s public finances.

Despite the relatively stable fiscal position,the Treasury flagged ongoing challenges,including outstanding VAT refund arrears totaling 32.8 billion dirhams and corporate tax refund claims amounting to 3.5 billion dirhams as of December 2024. These liabilities continue to exert pressure on the state’s financial performance.