Morocco’s fiscal gap soars despite higher revenue

Morocco recorded a wider budget deficit in the first 11 months of 2025 despite a sharp rise in tax earnings.

The gap surged nearly 50 percent from a year earlier to MAD68.8 billion ($7.5 billion), even though revenue swelled by around 16 percent to MAD366 billion, the economy ministry said this week.

The increase in revenue stemmed mainly from a 22 percent rise in tax earnings and government fees, the ministry said.

Spending grew by 13.5 percent to MAD505 billion due to increases in current expenditure and capital outlays.

The ministry said the deficit was a net figure as financial surpluses from previous years covered part of the spending.

Debt servicing declined to around MAD60 billion from the year-earlier MAD62.7 billion, the ministry said.

Officials said early this year there would be a large increase in expenditure to fund infrastructure development for the 2030 Fifa World Cup, which Morocco will co-host with Spain and Portugal.

In October, Morocco approved MAD380 billion for airports and other infrastructure as part of its preparations for the football tournament.

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The allocations are part of the North African Arab country’s 2026 budget, which envisages total spending of MAD761 billion, nearly 5.5 percent above the 2025 budget.

Transport minister Abdul Samad Qayuh said in April that Morocco planned to borrow to fund pre-World Cup infrastructure projects.

The projects include a fast-train network linking Casablanca on the Atlantic with the central city of Marrakesh and other areas, a new civilian airport in Casablanca at a cost of MD28 billion, and airport expansions in Rabat, Fez and other cities.