Morocco's Ministry of Economy: Sharp Increase of Budget Deficit Over the Last Decade

Chaima Lahsini

Rabat - During the last decade, Morocco has witnessed a sharp increase of the budget deficit, hitting a new record according to the Directorate of Financial Studies and Forecasting (DEPF).

“Over the last decade, the fiscal situation has led to a widening of the budget deficit, from an average of 2.6 percent of GDP between 2000 and 2007 to 4.1 percent of GDP in 2008-2016, setting a record deficit in 2012 with 6.8 percent of GDP,” according to the public finance dashboard published recently by the department under the Ministry of the Economy and Finance.

The DEPF's latest report, however, shows that everything is not grim in this scoreboard of public finances which gives an overview on the evolution of the various indicators of public finances of the state and local and regional authorities over the period 2000-2016.

Data collected by DEPF analysts shows that the years 2013 and 2014 experienced a significant recovery compared to 2012, recording deficits of 5.1 percent and 4.7 percent respectively.

According to the latter, “this decrease in the budget deficit reflects the significant reduction in the compensation charge (excluding the price support fund) of -23.7 percent in 2013, -22.4 percent in 2014 and -56.7 percent in 2015, due to the price indexation system for certain petroleum products.”

After analyzing the most significant data of the state and local authorities public finances, the report shows that the balance of the State budget, excluding debt interest, declined from 0.9 percent of GDP in the period 2000-2007 to -1.7 percent between 2008 and 2016.

The DEPF also noted that, after registering a surplus of 3.0 percent in 2008, the balance increase from year to year, settling at -4.4 percent of GDP in 2012 before moderating to -1.4 percent in 2015 and -1.3 percent last year.

According to the DEPF, the ordinary balance of the State budget (excluding VAT for local and regional authorities) improved in 2016 and 2015 with respective surpluses of +1.5 percent and 0.7  percent of GDP, after three years deficit (-0.7 percent in 2013, -2 percent in 2012 and -0.6 percent in 2011).

Between 2006 and 2010, this balance had a surplus period of +2.3 percent of GDP on average, to the point of representing +3.8 percent of GDP in 2008, or MAD 27.1 billion, indicated the DEPF.

As pointed out by the DEPF, this public finance scoreboard also traces the trends and structural changes that have marked public finances over the last fifteen years. This highlights the impact of the reforms on the budget deficit and the major changes in funding modalities.




  • The Moroccan Gold Eldorado

    The Moroccan Gold Eldorado, a Myth or a Reality?

    Rabat - Recently, a conspiracy theory video about a large gold discovery in Morocco is making rounds online. The video claims that a substantial gold reserve was discovered and is being extracted by a Canadian mining company called Maya Gold and Silver. We Moroccans are very proud human beings, we love our country and cherish...

  • Qatar's Emir Sheikh Tamim bin Hamad Al-Thani

    Qatar: How the Tables Are Turning in The Gulf

    Rabat - Amidst harsh sanctions and a long list of demands from its neighbors, Qatar’s ability to thrive under pressure may prove to be problematic for Saudi Arabia. As Saudi Arabia and its coalition attempt to wait out Qatar, the recent spat in the Gulf continues to become more and more global, and severely against...

  • FILE - In this Jan. 20, 2015 file photo, a plume of steam billows from the coal-fired Merrimack Station in Bow, N.H. If the nation doesn’t do more, the U.S. probably won’t quite meet the dramatic heat-trapping gas reduction goal it promised in last year’s Paris agreement to battle climate change, according to a new study. (AP Photo/Jim Cole, File)

    Climate Change : If You Can’t Measure It, You Can’t Fix It

    Chefchaouen - Climate change is happening at home and around the world. Chefchaouen is doing its part by embracing clean energy climate solutions and engaging its citizens in climate action. When it comes to fighting climate change, cities and local leaders are best positioned to lead that charge. Local leaders from coastal to landlocked communities are...

  • 20

    India Orders Internal Probe into Mistaken Use of Morocco-Spain Border Picture

    Hyderabad - The Indian Ministry of Interior on Wednesday ordered an internal investigation to find out how a picture of Morocco-Spain border was used in its annual report to show floodlights along the India-Pakistan border. What is most embarrassing is that the annual report of previous years was tabled during the Budget Session of Indian...

  • Amid Growing Tension, Thousands of Moroccans Stage Pro-Rif March in Rabat

    Neglect in Harsh Soil: The Deep Roots of the Rif Crisis

    Rabat - The ongoing protests in northern Morocco started almost eight months ago, but they have their origin in nearly a century of violent repression by the state. The Rif has, in spite of itself, got involved into a peaceful revolt since the death of the fishmonger Mohcine Fikri at the end of October 2016, a...

  • Tamim Bin Hamad al Thani emir of Qatar

    The Qatar Crisis: What Does It Mean?

    Rabat - The recent diplomatic fallout between Qatar and the rest of the Middle East could have serious economic and geopolitical consequences across the globe. Earlier this week, Qatar’s diplomatic crisis took an extreme turn as several Arab states severed diplomatic ties with the Gulf nation.  The original list of countries in the coalition against...

  • Moroccans spend Laylat al-Qadr, the 26th day of Ramadan, at the Hassan II mosque in Casablanca.

    Ramadan: Not just Abstinence from Daily Intakes 

    By Abdellatif Oudra Rabat - The observance of Ramadan, one of the five pillars of Islam, compels Muslims to fast from sunrise to sunset. But it is not just about abstaining from food or drink.  Ramadan, the ninth month of the Islamic calendar, is observed in commemoration of the revelation of Qur’an to the prophet Mohammad,...

  • Morocco Threatens to Terminate Agriculture Agreement with Europe

    Morocco and the EU: Managing the Future

    Rabat - Morocco enjoys proximity to Europe and is at an advantage of being favoured by the European Union as a close partner on political, economic, and cultural levels. Historical archives and political legacies tie Morocco directly with at least three influential European countries: France, Spain, and England. Demography, kinship, and immigration compel other EU...

  • The Educational and Cultural Implications of the Arab Spring

    The Educational and Cultural Implications of the Arab 'Spring'

    Rabat - In the last ten years or so, the Arab world has seen unprecedented collapses in the realms of politics and economy, among others. World NGOs regularly release area-specific rankings, in which Arab nations commonly rank at the bottom of lists in education, human rights, and income for instance while they top those of...

  • Thousands Hold Peaceful Demonstration in Memory of Mouhcine Fikri

    Al Hoceima and the Pedagogical Exercise

    Ottawa - What makes a democracy different from non-democracy? This is the classical and historical question asked by philosophers over the centuries and deeply questioned in the discipline of political science. Democracy cannot prevent inequality as the case in the United States where inequality is the highest globally. Democracy cannot stop corruption like in Brazil...