Casablanca – The Treasury General of the Kingdom (TGR) has reported a significant improvement in Morocco’s budget deficit, which stood at approximately $121.65 million at the end of April 2024, a marked reduction from the $1.09 billion deficit recorded during the same period last year. This improvement is partially attributed to a positive balance of $1.47 billion from special treasury accounts and independently managed state services.

Gross ordinary revenues for the first four months of 2024 reached $12.49 billion, reflecting a 15.7% increase compared to the end of April 2023. This growth was driven by substantial increases in various revenue streams: direct taxes rose by 13.4%, customs duties by 11.4%, indirect taxes by 8.3%, registration and stamp duties by 4.6%, and non-tax revenues by an impressive 69.9%.

On the expenditure side, the general budget’s total spending was $16.16 billion, showing a slight year-on-year decrease of 0.9%. This reduction is due to a 3.8% decrease in operating expenses and a 0.3% drop in budgeted debt costs, offset by an 8.1% increase in investment expenditures. Specifically, the decline in budgeted debt costs, down 8.9%, is linked to lower principal repayments ($2.08 billion compared to $2.28 billion) despite a 16.5% increase in interest payments ($1.36 billion compared to $1.16 billion).

Expenditure commitments by the end of April 2024, including those not requiring prior commitment visas, totaled $28.8 billion. This represents a commitment rate of 37%, slightly higher than the 36% recorded at the end of April 2023, though the issuance rate on commitments dropped to 73% from 75% the previous year.

Revenues from special treasury accounts amounted to $6.25 billion, which includes $1.49 billion transferred from the general budget’s common investment expenses. The issued expenditures from these accounts were $4.84 billion, including $120.62 million for tax refunds, rebates, and recovered tax amounts, resulting in a balance of $1.42 billion.

Independently managed state services (SEGMA) also saw a rise in revenues, reaching $83.61 million by the end of April 2024, up 17.9% from the previous year. Their expenditures increased by 29.7%, totaling $27 million.

Net customs revenues for the first four months of 2024 reached $2.88 billion, a 5.8% increase from the same period last year. This total includes revenues from customs duties, VAT on imports, and domestic consumption taxes on energy products, factoring in $4.12 million in tax refunds, rebates, and restitutions. Notably, net customs duties revenues were $526 million, up 11.4%, and net VAT revenues on imports were $1.78 billion, up 2.7%. Although VAT on energy products decreased by 11.1%, VAT on other products increased by 6.5%. Net domestic consumption tax revenues on energy products rose to $574 million, a 10.9% increase from the previous year, including $2.89 million in tax refunds, rebates, and restitutions. Gross customs revenues surpassed $2.88 billion, up from $2.73 billion at the end of April 2023.

Compensation expenditure emissions were significantly reduced, totaling $412 million by the end of April 2024, a 55% decrease from the same period the previous year. These emissions represent 24% of the total projections in the 2024 Finance Law. Issued operating expenses amounted to $9.43 billion, with $5.34 billion allocated for salaries and wages, marking a 2.1% increase. Material expenses rose by 11.7% to $2.74 billion, while common expenses decreased by 44% to $960 million. The TGR also noted a 4.4% reduction in the general budget’s share of tax refunds, rebates, and restitutions, primarily due to a decrease in VAT refunds within the country, which amounted to $262 million.

Morocco’s fiscal performance has improved significantly in early 2024, characterized by increased revenues across various streams and strategic reductions in specific expenditures. These fiscal measures are crucial as the country continues to navigate economic challenges and strive for sustainable growth.