Morocco's budget deficit continued to widen, reaching 30.1 billion dirhams (MMDH) by the end of May 2026, according to the latest data from the Ministry of Economy and Finance. This marks an increase from 26.7 billion dirhams recorded during the same period in 2025.
The ministry's report, published on June 26, 2026, attributes the rise to higher public spending, particularly on subsidies and social programs, alongside slower-than-expected revenue growth. Tax revenues increased by 4.2% year-on-year, but this was insufficient to offset expenditure growth of 7.8%.
Key expenditure items include the compensation fund, which rose by 12% due to global commodity price pressures, and public sector wages, which increased by 5% following recent civil service reforms. Investment spending also grew by 8%, driven by infrastructure projects linked to the 2030 World Cup preparations.
Economists note that the deficit remains within the government's annual target of 4.5% of GDP, but warn that sustained pressure on public finances could require adjustments in the second half of the year. The Ministry of Finance has stated it will monitor the situation closely and may introduce corrective measures if needed.
