Bank Al-Maghrib’s annual report shows that Morocco’s public finances improved in 2025, with both the budget deficit and Treasury debt declining as a result of stronger tax revenues and continued fiscal reforms. At the same time, the central bank warned that structural challenges, particularly pension reform and growing social commitments, remain key issues for the long-term sustainability of public finances.
According to the report presented by Governor Abdellatif Jouahri, the budget deficit, excluding proceeds from state asset sales, narrowed from 3.9 percent of GDP in 2024 to 3.5 percent in 2025. The improvement was supported by higher tax revenues despite additional government spending aimed at protecting purchasing power and financing major investment projects.
The report also noted that Treasury debt declined to 66.6 percent of GDP, reflecting a reduction in domestic debt, although external debt recorded a moderate increase.
Bank Al-Maghrib warned that expanding social protection programs, direct social support, rising public sector wages and the continued delay in pension reform are placing increasing pressure on Morocco’s public finances.
Meanwhile, tax revenues increased by 15.3 percent, generating more than MAD 51 billion in additional resources, supported by tax reform measures, stronger economic activity and improved tax collection.

