Budget Deficit Climbs to 55 Billion Dirhams
The Ministry of Economy and Finance has reported that the budget deficit reached 55 billion dirhams by the end of July 2025, compared to 40.2 billion dirhams during the same period last year.
The ministry, in its latest report on treasury revenues and expenditures, clarified that this deficit reflects an increase in expenditures amounting to 43.4 billion dirhams, exceeding the rise in revenues estimated at 28.7 billion dirhams.
Net revenues, after accounting for exemptions and tax deductions, achieved an execution rate of 57.4 percent compared to forecasts in the finance law, with an increase of 14.5 percent compared to the end of July 2024. Tax revenues contributed to this development with a total of 201.8 billion dirhams, an increase of 27.7 billion dirhams, achieving an execution rate of 63.1 percent.
On the other hand, regular expenditures rose to 213.9 billion dirhams, an increase of 25.1 billion dirhams, due to heightened spending on goods and services by 24.7 billion dirhams and interest on debt by 4.9 billion dirhams, while subsidy costs saw a decline of 4.5 billion dirhams.
The report highlighted that the execution rate of personnel expenditures reached 57.7 percent, compared to 62 percent for other goods and services expenditures, with increases of 10.7 billion dirhams and 14 billion dirhams, respectively. Interest on debt achieved an execution rate of 64 percent, as a result of an increase in domestic debt interest by 5.7 billion dirhams, against a drop in foreign debt interest of 753 million dirhams.
As for subsidy expenditures, they recorded an execution rate of 69.5 percent, with a decrease of 4.5 billion dirhams, primarily due to reduced support for butane gas (down 1.6 billion dirhams), sugar (down 939 million dirhams), and national flour for soft wheat (down 430 million dirhams), in addition to the cessation of support for road transport professionals, which amounted to 1.6 billion dirhams last year.
These developments resulted in a regular surplus of 12.9 billion dirhams, compared to 9.3 billion dirhams at the end of July 2024.
Investment expenditures reached 60.8 billion dirhams, increasing by 3.5 billion dirhams, with an execution rate of 57.6 percent. Meanwhile, the treasury’s special accounts recorded a negative balance of 7 billion dirhams, following a surplus of 7.8 billion dirhams during the same period last year.
The statistical document from the Ministry of Economy and Finance details the implementation of the finance law compared to results recorded in the previous year, illustrating trends in revenues and expenditures and their impact on treasury status.
