Morocco tax revenues jump by 10 billion dirhams in 2026 budget

Execution of the 2026 Budget Law showed tax revenues up by 10.4 billion dirhams year-on-year at the end of April, Minister Delegate in charge of the Budget Fouzi Lekjaa said.

Responding to oral questions in the House of Councillors on the implementation of the 2026 Budget Law, Lekjaa said the execution rate had reached 36.3% of forecasts. This unprecedented increase was driven mainly by corporate tax revenues, which rose by 9.1 billion dirhams, or 25% compared with the end of April 2025.

Income tax revenues, for their part, increased by 1 billion dirhams, or 4.8%, while value-added tax (VAT) revenues rose by 1.3 billion dirhams, up 4%, with an execution rate of 49% at the end of April.

Registration and stamp duties also climbed by 1 billion dirhams, or nearly 11.4%, while revenues from the domestic consumption tax increased by 854 million dirhams, as domestic consumption improved by 7.4%.

On the expenditure side, Lekjaa said implementation of the Budget Law remained in line with forecasts, with the exception of measures aimed at cushioning the effects of the current economic situation and limiting their impact.

In this regard, the butane gas subsidy costs 600 million dirhams per month to keep cylinder prices unchanged. A further 650 million dirhams is allocated each month to stabilise transport prices, while 300 million dirhams goes toward maintaining electricity prices at their current levels. The cost of electricity support alone is expected to reach 3 billion dirhams.

According to the minister, additional tax revenues linked to VAT are not expected to exceed 3 billion dirhams over the year, even in the best-case scenario. VAT accounts for only 0.46 dirhams in the price of a litre of diesel, while the average additional cost resulting from the repercussions of the crisis stands at 3.7 dirhams per litre. As for inflation, it remained below 1% during the first three months of the year, before reaching 0.9% in March.

The minister also recalled that the government aims to reduce the budget deficit to 3% of gross domestic product (GDP) by the end of 2026, down 0.5 percentage points from 2025. Debt is also expected to continue its downward trend, stabilising at around 66% of GDP in 2026.

Ordinary revenues, meanwhile, rose from 256 billion dirhams in 2021 to 424 billion dirhams in 2025, representing an average growth rate of 13.5%.