Morocco's budget deficit declines to AED 50.5 billion by July

The state budget deficit decreased to 50.5 billion dirhams at the end of July 2026, compared to 54.7 billion dirhams during the same period in 2025, a decrease of 4.2 billion dirhams, according to the latest data of the Ministry of Economy and Finance. Background: How to measure the budget deficit The budget deficit is the difference between a country's revenues and expenditures during a specific period, and is considered one of the basic indicators followed by international financial institutions to assess the health of the public finances of a particular country. Morocco has been working for years on a gradual path to reduce this deficit as part of public finance reform commitments. Income and expenditure figures The total revenues of the state amounted to 253.8 billion dirhams at the end of July, an increase of 28.2 billion dirhams compared to the same period last year, which represents the completion rate of 58.6% of the forecasts. Tax revenues alone amounted to AED 223.8 billion with a completion rate of 61.1% and an increase of 10.9%, while tax exemptions and refunds amounted to AED 19.2 billion. On the other hand, ordinary expenses amounted to AED 242.6 billion with an achievement rate of 63.9%, with an increase in the costs of goods and services (+14.4%), debt interest (+14%), and support expenses (+10.8%). Investment expenses amounted to 69.3 billion dirhams, with a completion rate of 60.4%. What This Undo Means The decrease in the deficit reflects a relative improvement in the balance of public finances, supported by higher fiscal revenues at a faster pace than expenditures. The private accounts of the treasury recorded a surplus of 7.7 billion dirhams, compared to a deficit of 7 billion dirhams in the same period of 2025 — a further indication of the improvement in the general financial situation of the country during the first seven months of the year. Source: Ministry of Economy and Finance, Hespress