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Morocco 2027 fiscal and social policy transitions

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2026-10-24 20:26 UTC → 2026-10-24 22:36 UTC · added ~~removed~~

Morocco is navigating significant fiscal and political transitions regarding its 2027 Finance Bill. Initial reports highlighted budgetary difficulties caused by a discrepancy between the government’s $70 per barrel Brent crude oil assumption and actual market prices reaching approximately $108. The administration also faced criticism for ending the practice of using innovative financing—transferring public assets like hospitals to investment funds—which had previously generated over 80 billion dirhams but was accused of masking deficits. Following a Council of Ministers presided over by King Mohammed VI and Crown Prince Moulay El Hassan in October 2026, Minister of Economy and Finance Fouzi Lekjaa presented the draft bill to Parliament. The ~~legislation~~ proposed budget outlines a total spending increase to 825 billion dirhams, targeting an economic growth rate of 3.7%. The legislation focuses on structural reforms to increase purchasing power and social ~~protection, including~~ protection. Key measures include a gradual restructuring of the income tax scale between 2027 and ~~2031. Key measures include~~ 2031, raising the annual income tax exemption threshold from 40,000 to 60,000 dirhams, and reducing tax brackets from five to ~~three, and lowering the top marginal rate from 37% to 30%.~~ three. Notably, monthly net salaries below 10,000 dirhams are set to be fully exempt starting January ~~2027, a move expected to benefit approximately 87% of employees and provide a monthly gain of roughly 500 dirhams for most affected.~~ 2027. Social priorities are supported by an allocation of approximately 62 billion ~~dirhams. This includes~~ dirhams, including raising the minimum monthly pension ~~from 1,000 to 1,700 dirhams in 2027, with a target of 3,000 dirhams by the end of the mandate,~~ and increasing minimum direct social support from 500 to 1,000 dirhams. To protect purchasing power, ~~the bill allocates~~ 19.4 billion dirhams are allocated to support the prices of butane gas, sugar, and national flour, while the government will cover monthly electricity bills for households with consumption not exceeding 100 dirhams. Additionally, the budget raises the ceiling for National Defense Administration commitments to 190.5 billion dirhams and plans for 34,454 new budgetary positions.

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