Morocco’s ordinary state revenues reached MAD 261 billion at the end of July 2026, up 8.3% year-on-year. This performance was mainly driven by strong growth in tax revenues, which reached MAD 237.1 billion, while the Treasury deficit narrowed by MAD 5.5 billion compared with the same period in 2025.
Morocco’s public finances continued to consolidate during the first seven months of 2026. At the end of July, ordinary state revenues stood at MAD 261 billion, compared with approximately MAD 241 billion a year earlier, representing growth of 8.3%. This improvement reflects stronger performance from the main budgetary revenue sources in a context marked by continued high public spending.
Tax revenues remain the main driver
Tax revenues are the main factor behind this increase. They reached approximately MAD 237.1 billion, up 12.9% year-on-year, representing nearly MAD 27 billion in additional revenue. The performance reflects, in particular, higher revenues from corporate income tax, VAT and personal income tax.
Corporate tax revenues are benefiting from solid results in several economic sectors, while VAT continues to represent one of the State budget’s major revenue sources. The increase in tax collection also confirms the impact of efforts to improve collection, broaden the tax base and strengthen tax compliance.
At the end of July, the Treasury deficit stood at around MAD 48.2 billion, an improvement of approximately MAD 5.5 billion compared with the same period in 2025. This represents a positive signal for the Kingdom’s budget trajectory, as authorities seek to reconcile deficit control with maintaining a high level of public investment.
Pressure on public spending nevertheless remains significant. Social programmes, the public-sector wage bill, support mechanisms and infrastructure investment continue to mobilize substantial resources. Projects related to water, transport, energy, sports infrastructure and the modernization of public facilities are expected to continue weighing on state finances.
The government’s challenge is now to preserve revenue momentum while preventing higher tax pressure from weighing on investment and consumption. Broadening the tax base, reducing informality, combating tax fraud and improving fairness among taxpayers are therefore essential levers.
The 12.9% increase in tax revenues stands out as one of the most significant indicators of the budgetary situation. It provides the State with additional room to finance its priorities while gradually continuing to reduce the deficit.
Morocco is therefore pursuing a gradual consolidation of its public finances, based on stronger revenue mobilization, more efficient collection and the preservation of public investment. The ability to maintain this momentum during the second half of the year will be decisive in confirming the improvement in the budget trajectory in 2026.
