Morocco's Budget Deficit Hits 56.9 Billion Dirhams by End of August 2026
Morocco's Treasury (TGR) reports a budget deficit of 56.9 billion dirhams by end-August 2026, driven by a 71.3% jump in subsidy fund spending and a 7.1% rise in customs revenue.
Morocco's Treasury General Directorate (TGR) said in its latest monthly public finance bulletin that the state's revenue and expenditure position shows a budget deficit of 56.9 billion dirhams (MMDH) by the end of August 2026, up from 54.1 billion dirhams over the same period in 2025 — a widening of 2.8 billion dirhams. The figure accounts for a positive balance of 16.8 billion dirhams generated by the Treasury's special accounts (CST) and autonomously managed state services (SEGMA).
Revenue boosted by corporate tax
The state's ordinary revenue reached 286.6 billion dirhams by end-August 2026, up 5.5% year-on-year, driven mainly by a 21.6% jump in corporate tax receipts. Direct taxes rose 12.7%, customs duties 8.8%, indirect taxes 8%, and registration and stamp duties 12.6%, while non-tax revenue fell 27.4%.
On the spending side, general budget expenditure reached 397.5 billion dirhams, up 10.4%, driven by a 13.2% rise in operating expenses and an 8.2% rise in investment spending, along with a 3.8% increase in budgeted debt charges.
Subsidy spending jumps 71%, customs revenue climbs
Spending by Morocco's Compensation Fund, which subsidizes staple goods, surged 71.3% year-on-year to reach 11.1 billion dirhams, representing 80.5% of the amount budgeted for the year. Customs revenue, meanwhile, totaled 69.69 billion dirhams over the first eight months of 2026, up 7.1% year-on-year.
| Indicator | Value at end-August 2026 | Year-on-year change |
|---|---|---|
| Budget deficit | 56.9 billion DH | +2.8 billion DH |
| Ordinary revenue | 286.6 billion DH | +5.5% |
| General expenditure | 397.5 billion DH | +10.4% |
| Compensation Fund spending | 11.1 billion DH | +71.3% |
| Customs revenue | 69.69 billion DH | +7.1% |
| Corporate tax | — | +21.6% |
Why it matters
The widening deficit comes as Bank Al-Maghrib's foreign currency reserves climb past 502 billion dirhams, giving the state room to finance its needs despite the growing gap between revenue and spending. The sharp rise in compensation spending reflects continued pressure on the state budget to support prices of basic goods, even as the government has pledged to reform the Compensation Fund. These figures are likely to become one of the more sensitive files for Morocco's next government, following legislative elections scheduled for late September 2026.