Morocco approves additional MAD 20 billion in budget support, details allocations

Budget Minister Fouzi Lekjaa said the government has approved an additional 20 billion Moroccan dirhams ($2 billion) for the state budget.

The funding aims to support the compensation fund, protect household purchasing power, cover exceptional expenses, strengthen public enterprises, and respond to flood damage in northern Morocco.

Breakdown of the funding package

Speaking during a parliamentary finance committee meeting, Lekjaa said the package is divided into four main areas, in line with the priorities of the finance law.

He said 8 billion dirhams will be allocated to the compensation fund to stabilize butane gas prices and help contain transport costs for both passengers and goods.

Another 6 billion dirhams will cover unexpected costs in the 2026 budget linked to international developments.

A further 4 billion dirhams will be used to strengthen the capital of public institutions and enterprises.

The remaining 2 billion dirhams will be allocated to repair damage caused by floods in northern Morocco.

Lekjaa said the additional funding was made possible by rising tax revenues through the end of April.

Tax revenues increased by 10.9 billion dirhams, or 8.9%, compared with the same period last year, reaching 36.4% of the annual finance law target.

He said the increase was mainly driven by corporate tax, which rose by about 9 billion dirhams, and value-added tax (VAT) revenues, which increased by around 1.2 billion dirhams.

Lekjaa said the figures reflect gradual improvements in tax collection, ongoing tax reforms, a broader tax base, and stronger sustainability of public finances.

He said public finances remain stable in line with finance law forecasts. The budget deficit is expected to fall to 3% of gross domestic product (GDP) in 2026, compared with 3.5% in 2025. Treasury debt is also projected to decline, reaching about 66% of GDP in 2026.

The minister added that state revenues grew strongly between 2021 and 2025, with regular revenues increasing by an average of 13.5% annually and tax revenues rising by 12.4%.