Casablanca – Morocco’s public finance indicators over the first eleven months of 2025 point to a dual trend: a strong increase in customs-related revenues alongside notable shifts in the structure of public spending. Data released in recent monthly bulletins by the Kingdom’s Treasury General show that higher import-related tax receipts have coincided with tighter control over subsidy costs, continued growth in operating expenses, and a clear acceleration in public investment.

By the end of November 2025, net customs revenues reached approximately $9.47 billion, up 9.8% year on year. This performance reflects improved trade flows and higher tax proceeds linked to imports, even after accounting for refunds and tax exemptions totaling about $9.28 million.

Customs revenues are generated from three main sources: customs duties, value-added tax (VAT) on imports, and the domestic consumption tax applied to energy products. Each component contributed differently to the overall increase, highlighting both structural trends in imports and changes in consumption patterns.

Net revenues from customs duties stood at around $1.59 billion, compared with about $1.51 billion over the same period in 2024, representing a 5.5% increase. This rise suggests a moderate improvement in the yield of this tax base, supported by sustained import volumes.

The largest share of customs-related income continued to come from VAT on imports, which reached nearly $5.92 billion by the end of November 2025, up from roughly $5.45 billion a year earlier. This translates into growth of 8.6%, confirming the central role of VAT in Morocco’s fiscal revenues. Within this category, VAT receipts on energy products declined by 2.6%, reflecting lower taxable values or volumes, while VAT on other imported goods increased by 10.8%, pointing to stronger demand for non-energy imports.

Revenues from the domestic consumption tax on energy products showed the fastest growth. They climbed to about $1.96 billion, compared with nearly $1.67 billion at the end of November 2024, marking a robust 17.4% increase, even after taking into account tax deductions, exemptions, and refunds of approximately $5.77 million. This trend underscores the importance of energy-related taxation in supporting public finances amid evolving market conditions.

On the expenditure side, Treasury data reveal a contrasting picture between declining subsidy costs and expanding operational and investment spending. Subsidy (compensation) expenditures amounted to around $1.40 billion by the end of November 2025, down 5.7% year on year. These outlays represented about 79.3% of the total allocations programmed under the 2025 Finance Law, indicating both progress in budget execution and a reduction in overall subsidy costs.

At the same time, operating expenditures rose significantly, reaching approximately $30.75 billion. A substantial portion of this amount—around $16.93 billion—was devoted to wages and salaries, which increased by 10.4% compared with the previous year. This rise reflects the government’s continued commitment to meeting its social and administrative obligations, particularly in a context of ongoing public sector demands.

Capital expenditures also followed an upward path, increasing by 17% to about $7.36 billion, compared with nearly $6.29 billion during the same period in 2024. This growth signals an acceleration in public investment, with continued support for infrastructure projects and development programs seen as key drivers of medium-term economic growth.

In addition, shared or joint expenditures recorded a sharp increase of 41.8%, reaching roughly $4.66 billion, up from about $3.29 billion a year earlier. This expansion reflects higher commitments linked to cross-sector programs and coordinated initiatives involving multiple public entities.

Tax refund dynamics also played a role in shaping the fiscal picture. The general budget’s share of refunded amounts and tax exemptions increased by 14.2%, driven mainly by higher domestic VAT refunds, which rose to around $1.37 billion from approximately $1.28 billion. Corporate tax refunds also increased markedly, reaching about $347 million, compared with roughly $222 million a year earlier.

Taken together, these indicators point to a rebalancing of Morocco’s public finances in 2025. Strong customs revenue growth has helped support the budget amid changing trade and consumption patterns, while lower subsidy spending has eased some fiscal pressure. At the same time, rising operating costs and a clear push toward higher public investment reflect policy choices aimed at sustaining economic activity and meeting social commitments.

As the year draws to a close, the combined evolution of revenues and expenditures highlights the challenge of maintaining fiscal discipline while responding to economic and developmental priorities, a balance that continues to shape Morocco’s public finance strategy.