Casablanca – Recent reports from the Ministry of Economy and Finance offer a comprehensive assessment of Morocco’s economic status, highlighting both successes and challenges. The examination reveals a notable surge in the budget deficit, which has risen sharply to 1.7 billion Dirhams (approximately $175.26 million USD), marking a significant increase from the previous year’s 516 million Dirhams (approximately $53.30 million USD).

In details, the deficit primarily stems from a surge in expenditures, surpassing the growth in revenues. Despite ordinary revenues showing promise with an 8% increase compared to expectations, they still fall short of balancing the escalating expenses.

The surge in spending is attributed to various factors, including rising employee costs, restructuring expenses, and other service-related expenditures. Notably, restructuring costs have soared to 3.2 billion Dirhams (approximately $330.93 million USD), marking a 25.2% increase, largely due to support provided to transportation sector professionals.

Despite these challenges, there are positive strides in investment spending, which remains consistent at around 12.3 billion Dirhams (approximately $1.27 billion USD), akin to the previous year. However, compared to the targets set in the 2024 budget law, the accomplishment rate stands at only 12.2%.

Additionally, the treasury’s special accounts, while showing a surplus balance, have witnessed a reduction from the previous year. This underscores the need for strategic financial management in the current economic climate.

On a brighter note, amidst financial challenges, there has been a notable surge in state revenues at the beginning of the current fiscal year. Recent data reveals a promising increase, totaling about 43.1 billion Dirhams (approximately $4.45 billion USD) in the first two months, representing a commendable 10.7% growth compared to the previous year.

This rise in state revenues comes at a crucial time as the government grapples with escalating expenses and a growing public debt burden. With expenses reaching 53.7 billion Dirhams (approximately $5.54 billion USD), driven primarily by employee costs and debt obligations, the increase in revenues provides some relief.

Furthermore, significant progress has been made in investment endeavors, with achievements totaling 16.3 billion Dirhams (approximately $1.69 billion USD), showcasing the government’s commitment to fostering economic growth.

However, challenges remain significant, with the government anticipating a substantial deficit of approximately 65.6 billion Dirhams (approximately $6.78 billion USD) for the current fiscal year. To address this, internal borrowing of 13.1 billion Dirhams (approximately $1.35 billion USD) and external financing of 52.5 billion Dirhams (approximately $5.42 billion USD) have been allocated, demonstrating the government’s determination to navigate economic challenges effectively.