Morocco's budget notes MAD 1.57 billion surplus at the end of March

Morocco’s budget recorded a surplus of about MAD 1.57 billion at the end of March, after a deficit of about 10.6 billion at the end of February.

The budget is expected to end the current year with a deficit of MAD 65.6 billion, according to government projections within the 2023 Finance Law.

According to the Expenditures and Resources Situation Bulletin issued by the Ministry of Economy and Finance, the surplus recorded at the end of March resulted from an increase in resources by more than MAD 4.6 billion, significantly greater than the growth in expenditures by an additional MAD 4.2 billion.

The Ministry of Economy and Finance indicated that the implementation of the Finance Law 2023 during the first quarter of the year coincides with persisting inflationary pressures, and the tightening of monetary policies both nationally and internationally.

Despite this context, the ministry expects a slight acceleration in economic activity in the first quarter compared to the same period last year, thanks to a slight recovery in the agricultural added value despite weak rainfall, and the growth of non-agricultural activities, most notably the tourism sector.

State resources amounted to about MAD 78.1 billion at the end of March, compared to MAD 73.5 billion in the same period last year, an increase of 6.3%.

The increase in resources was driven by direct and indirect tax resources, customs and taxation fees, as is the case with non-tax resources, which include profits from public contributions and corporations.

On the expenditure side, it moved from MAD 72.3 billion at the end of March 2022 to MAD 76.5 billion in the first quarter of this year, which represents an increase of about 5.8%.

The National Subsidies Fund expenditures recorded about MAD 9.1 billion in the first three months, of which MAD 5 billion are to subsidize the price of butane gas, and MAD 800 million are to support professionals in the transport sector.

Expenditure of butane gas recorded stability due to the international price decrease of a ton from USD 890 to USD 666 during the first quarter of this year.