Morocco’s Budget Deficit Soars to 22.5 Billion Dirhams in Early 2021

In its monthly bulletin of public finance statistics (BMSFP) for the month of April, the TGR explains that this deficit takes into account a positive balance of 12.8 MMDH generated by the special Treasury accounts (CST) and the autonomously managed state services (SEGMA), reports the MAP. Gross ordinary revenue stands at 81 billion DH, thus recording a decrease of 12.3%, while ordinary expenditure reached 91.8 billion DH, an increase of 5.4%. Consequently, a negative ordinary balance of 10.9 MMDH is recorded.

The decline in revenue is due to the decrease in direct taxes by 4.4% and non-tax revenue (66.9%), combined with the increase in customs duties by 21.1%, indirect taxes (7.7%) and registration and stamp duties (4.3%). As for expenditure issued under the State’s general budget, it amounts to 135.2 MMDH at the end of April 2021, down 0.6% compared to its level during the same period a year earlier. This situation is explained by the 21% decrease in investment expenditure and the 5.5% increase in operating expenditure and the 5% increase in budgeted debt service.

The TGR also specifies that the 5% increase in budgeted debt service is attributable to the 5.2% increase in principal repayments to 18.9 MMDH and the 4.7% increase in debt interest to 10.64 MMDH. As for expenditure commitments, including those not subject to prior commitment approval, they amounted to 219.9 MMDH, i.e. a global commitment rate of 40%. As for the issuance rate on commitments, it is around 75% compared to 78% a year earlier.