Local finances are improving. The provisional balance of local authority expenditures and revenues as of the end of December shows a 14.8% increase in revenue and a 4.5% increase in operating expenses.
This results in a positive ordinary balance of 25.1 billion DH and an overall surplus of 10.2 billion DH. Ordinary revenue for local authorities reached 53.1 billion DH, marking a 14.8% increase compared to the end of December 2023. This growth is attributed to: 13.5% increase in transferred revenue, 26.4% rise in revenue managed by the state, 8.7% increase in revenue managed by local authorities. These findings were reported in the latest Monthly Bulletin of Local Finance Statistics, published by the General Treasury of the Kingdom (TGR).
Tax revenue totaled 43.4 billion DH, reflecting a 21.1% increase compared to December 2023. This growth is driven by:a 23.1% increase in direct taxes, and a 19.5% increase in indirect taxes. Tax revenue accounted for 81.8% of total local authority revenues by the end of December 2024.
VAT, Insurance Contract Tax…
Transferred revenue amounted to 32.2 billion DH by the end of December, compared to 28.4 billion DH in 2023, an increase of 13.5%. This rise is attributed to: a 20% increase in local authorities’ share of VAT revenue (+3.439 billion DH), a 17.9% increase in regional allocations from corporate tax (IS) and income tax (IR) (+906 million DH), a 66.3% increase in the share of insurance contract tax revenue (+254 million DH). Local authority revenue consists 38.8% of their share of VAT proceeds. By the end of December, state-managed resources for local authorities reached 10.3 billion DH, up from 8.1 billion DH the previous year—a 26.4% increase. This growth stems from: a 43% increase in municipal service tax revenue (+1.770 billion DH), a 6.7% rise in business tax revenue (+242 million DH), a 32.9% increase in housing tax revenue (+140 million DH).
The revenue directly managed by local authorities totaled 10.554 billion DH by the end of December 2024, compared to 9.705 billion DH the previous year, marking an 8.7% increase. These revenues primarily consist of: taxes on undeveloped urban land, temporary occupation fees for communal public property, taxes on construction activities.Additionally, this revenue includes income from public land assets and fees collected from wholesale market agents handling fruits and vegetables…
Mohamed CHAOUI
