Morocco’s treasury met the bulk of its financing requirements in January 2026 through the domestic market, covering 91 percent of its needs, according to a report by Attijari Global Research (AGR).
AGR reported that the treasury’s net financing requirement for January stood at MAD 15.5 billion ($1.7 billion). The heavy reliance on domestic borrowing reflects the government’s strategy of prioritising internal resources and limiting external debt exposure.
The budget deficit widened during the month, reaching MAD 9.6 billion ($1.05 billion), up MAD 2.8 billion ($305 million) from January 2025. AGR attributed the increase to a sharper decline in revenues compared with public spending. Ordinary revenues fell by 8.3 percent, equivalent to MAD 2.7 billion ($294 million), largely driven by a decrease in income tax receipts of MAD 2.5 billion ($273 million).
Expenditures remained broadly stable, rising marginally by 0.2 percent year-on-year. The overall stability was supported by a MAD 9.2 billion ($1.0 billion) reduction in spending on goods and services, partially offset by an increase of about MAD 2 billion ($218 million) in investment outlays. Meanwhile, the Treasury’s Special Accounts recorded a surplus of MAD 8.3 billion ($905 million), down from MAD 15.8 billion ($1.72 billion) in the same period last year.
The ordinary balance for January registered a deficit of MAD 2.9 billion ($316 million), marking the first such shortfall since February 2025. This highlights the continued pressure on Morocco’s revenues amid fluctuating economic conditions.
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Looking ahead, AGR projected Morocco’s gross financing requirement for 2026 at approximately MAD 144.1 billion ($15.7 billion). Of this total, the report expects around MAD 114.9 billion ($12.5 billion) to be raised on the domestic market, with the remaining MAD 29.2 billion ($3.2 billion) sourced from external borrowing.
AGR noted that this financing structure underscores Morocco’s strategy of leaning on domestic markets to fund fiscal needs while keeping external debt at manageable levels. By relying primarily on internal funding, the treasury aims to maintain stability and limit exposure to foreign exchange fluctuations and external shocks.
The report also highlighted that the government’s careful management of expenditure—particularly the reduction in goods and services spending—played a key role in mitigating the impact of declining revenues on overall fiscal balance. At the same time, sustained investment spending reflects ongoing efforts to support growth and development priorities.
Analysts said Morocco’s approach signals confidence in domestic financial markets and the government’s ability to mobilise local savings to fund its fiscal operations. AGR noted that the reliance on internal resources could help ensure the treasury meets its obligations while continuing to invest in infrastructure and strategic economic projects.
With the domestic market expected to finance the bulk of 2026 needs, Morocco aims to balance debt sustainability with fiscal expansion, maintaining macroeconomic stability amid broader regional and global economic challenges. The treasury’s January performance illustrates the government’s capacity to navigate these pressures while continuing to secure funding for essential public projects.
By focusing on internal financing and strategic spending, Morocco is managing short-term fiscal pressures while positioning itself to meet its medium-term economic objectives, ensuring both stability and investment continuity across key sectors.
