Morocco’s Budget Deficit Holds Steady at 51.2 Billion Dirhams in October

This result was achieved thanks to the impact on tax revenues from the abrupt halt of activity in 2020, and the surplus of 8.5 BMDH at the end of October 2020 of the Special Fund for the Management of Covid-19, according to the Statement of Treasury Charges and Resources (SCRT) for the month of October, published by the Ministry of Economy and Finance.

Thus, the recovery of economic activity, following the easing of measures related to the health crisis and the vaccination campaign, had a positive impact on tax revenues related to consumption and imports. On the other hand, the rise in international prices of energy products, including gas, has increased compensation-related expenses.

According to the note from the ministry, revenues recorded, on a net basis of tax refunds, rebates and restitutions, an increase of nearly 21.3 BMDH compared to the end of October 2020 and a realization rate of 85.1% compared to the forecasts of the Finance Act (LF).

The compensation burden, for its part, increased by 4.7 BMDH following the rise in the price of butane gas, which reached an average of $610/tonne ($/T) compared to around $364/T a year earlier.

Furthermore, the ministry states that the special Treasury accounts generated a surplus of nearly 7.3 BMDH against 12.6 BMDH at the end of October 2020.