Morocco’s budget deficit reached 62.8 billion MAD, i.e. 4.4% of the Gross Domestic Product (GDP), by the end of December 2023, said the Ministry of Economy and Finance in its Treasury situation report (SCRT) for December 2023.
This figure is slightly lower than the target set in the 2023 appropriation bill (4.5% of GDP), but represents a one-point improvement over the output for 2022 (5.4% of GDP), according to the Ministry.
The deficit was slightly curbed thanks to the good performance of both tax and non-tax revenues, which made it possible to accelerate the investment effort in certain structuring projects, notably under the National Program for Drinking Water and Irrigation, to cover exceptional expenditure relating to measures taken by the State to support household purchasing power and economic activity, and to assist populations affected by the earthquake.
Ordinary revenues (tax refunds, rebates, and restitutions) increased by 22.2 Bln MAD or 7.4% compared to 2022.
Expenditure showed an implementation rate of 105.6% and an increase of 22 Bln MAD compared to 2022. This overrun in relation to the appropriation bill forecasts was covered by the margins available in terms of revenue dynamics, particularly tax revenues, which enabled a budgetary extension of 10 Bln MAD.
These changes in ordinary income and expenditure resulted in a positive ordinary balance of 30.9 Bln MAD, compared to 13.8 Bln MAD in 2022.
The Special Treasury Accounts (CST) showed a surplus balance of 17 Bln MAD, compared to 8.4 Bln MAD in 2022. CST resources include revenues of 19.6 Bln MAD from the Earthquake Special Fund, and 15.8 Bln MAD from the Social Protection and Cohesion Support Fund (compared with 9.3 Bln MAD in 2022).