Morocco boosts budget allocations for public institutions and enterprises

A report from the Ministry of Economy and Finance on public institutions and enterprises in Morocco, included with the draft budget law for 2025, reveals a significant increase in financial transfers to these entities between 2014 and 2023, with an annual growth rate of 11.08%.

The report indicates that over 200 institutions benefit from state financial transfers, while fewer than 25 bodies contribute to the state budget.

According to the report, prepared under Article 48 of Organic Law No. 130.13 related to the budget law, “financial allocations from the general state budget for these institutions reached 65.687 million dirhams last year.” The report emphasizes that these transfers primarily target priority sectors: education, agriculture, energy, transportation, and health.

Regarding the financial performance of public institutions and enterprises, the report states that their turnover for 2023 reached 332.070 million dirhams, showing relative stability compared to 2022, attributed to “a decline in the turnover of the Office Chérifien des Phosphates during this period.” It projects a turnover of 345.912 million dirhams for the sector by the end of the current fiscal year, reflecting a 4% increase from the previous year.

In terms of investments, public portfolio institutions and enterprises reportedly invested nearly 81.285 million dirhams last year, marking an increase of approximately 6% compared to 2022.

The majority of these investments (74%) were made by institutions under the National Agency for Strategic Management of State Contributions.

Looking ahead, the Ministry of Economy and Finance anticipates that total investments for the current fiscal year will reach 115.215 million dirhams, a 42% increase from 2023. Investments by these institutions are projected to reach 137.700 million dirhams and 141.614 million dirhams in 2025 and 2026, respectively.

Additionally, the report forecasts that Moroccan public institutions and enterprises will generate revenues of about 28.546 million dirhams in the upcoming fiscal year, including 19.546 million dirhams from profit and various contributions and 9.000 million dirhams from asset disposals and privatizations.

The report also notes that total tax contributions from these institutions for corporate tax, income tax, and value-added tax reached 26.638 million dirhams in the last fiscal year, an increase of 7% compared to 2022. This amount represents 16% of the total state revenue from these taxes.