Morocco's Fiscal Improvement: Budget Deficit Narrows
In a significant development for Morocco's economy, the country’s budget deficit has narrowed to 33.1 billion dirhams at the close of September 2026, reflecting a remarkable improvement from the 52.4 billion dirhams recorded in the same period last year. This positive shift was highlighted in a recent report released by the Ministry of Economy, Finance and Public Performance in Rabat, showcasing the government's effective financial management strategies amidst challenging economic conditions.
The reduction in the budget deficit is attributed to a robust increase in ordinary revenue, which rose by an impressive 14.8% to reach 338.8 billion dirhams. This amount constitutes approximately 78.3% of the revenue projections outlined in the 2026 Finance Act. Notably, tax revenue saw an increase of 11.7%, while non-tax revenue surged to 46.7 billion dirhams, including significant contributions from public institutions and innovative financing mechanisms.
On the expenditure side, ordinary spending escalated by 9.3% to 290.7 billion dirhams, primarily driven by higher costs associated with goods and services, interest payments on debt, and subsidies. Despite this increase, the ordinary balance recorded a surplus of 48.2 billion dirhams, indicative of the government's ability to manage its expenditures effectively. Furthermore, investment expenditure amounted to 82.8 billion dirhams, while the Treasury’s special accounts reported a surplus of 1.5 billion dirhams, further contributing to the overall fiscal health.
The financing requirements for the Treasury have decreased to 41.4 billion dirhams, a notable decline from the previous year's 71.7 billion dirhams. This decrease is largely the result of the narrowed budget deficit and a favorable change in pending operations, which improved by 11 billion dirhams when compared to September 2025. The ministry’s report indicates that these financing needs were met through a combination of domestic and external funding sources.
In terms of borrowing, net domestic borrowing reached 22.1 billion dirhams, with total subscriptions amounting to 97.3 billion dirhams and principal repayments standing at 75.2 billion dirhams. Meanwhile, net external borrowing was reported at 25.2 billion dirhams, which included drawdowns of 40.7 billion dirhams—23.7 billion of which was sourced from international financial markets—and principal repayments totaling 15.5 billion dirhams. This strategic approach to financing underscores Morocco's commitment to maintaining economic stability and fostering growth, even in the face of global economic uncertainties.
As reported by en.yabiladi.com.
