Morocco’s budget deficit soars 40%

A sharp increase in spending on projects to support Morocco’s hosting of the World Cup coupled with lower revenues boosted the kingdom’s budget deficit by nearly 40 percent in the first two months of 2026.

Project spending in the North African country has sharply grown over the past two years as it seeks to develop sport infrastructure and other facilities in preparation to co-host the FIFA World Cup games in 2030.

The budget shortfall surged to nearly MAD34.5 billion ($3.7 billion) in January-February this year, from MAD24.8 billion ($2.6 billion) in the same period last year, Morocco’s economy and finance ministry said on its website.

Revenues, mainly from tax, tourism and phosphate exports, slumped by 5 percent, the ministry said.

On the expenditure side, spending climbed by 9 percent to MAD85.7 billion during the period despite a steep fall of 31 percent in subsidies, the report said.

Investment spending recorded a strong increase of 37 percent to reach MAD23.1 billion during the first two months of this year.

“This reflects continued government efforts to fund major projects, with about 20 percent of the annual investment plan executed by the end of February,” the report said.

External borrowing also increased, with net foreign financing reaching MAD976 million, compared with MAD92 million a year earlier, it said.

In October last year, Morocco approved MAD380 billion ($41 billion) for airports and other infrastructure projects associated with the 2030 world cup event.

• Morocco tourism jumps as World Cup approaches
• Morocco gets $316m loan for airport upgrades
• Morocco blinks on Nador but its gas strategy stays intact