Morocco plans to reduce its budget deficit below 67% by 2027, enhancing fiscal discipline and social investments. The government reported a drop in the deficit by 0.5% of GDP in 2024, thanks to effective revenue collection and expenditure control. Expanded social protection efforts have greatly increased coverage and accessibility for citizens.
Morocco’s budgetary strategy for 2025-2027 focuses on reducing the budget deficit while ensuring long-term debt sustainability and investing in social protection. Minister of Economy and Finance, Nadia Fettah, announced the goal of lowering the Treasury’s debt ratio to below 67% by 2027.
The government plans to strengthen fiscal discipline by setting medium-term debt objectives and controlling public spending while increasing revenues. In 2024, Morocco achieved a 0.5% reduction in the budget deficit relative to GDP compared to 2023, alongside increased progress in revenue collection and fiscal strategies.
Notably, reforms across over 100 social programs successfully generated MAD 15 billion, with an additional MAD 11 billion raised through tax revenues. Over MAD 71 billion has been allocated in the public budget for the years 2023-2025, aimed at enhancing social security and direct financial support initiatives.
Furthermore, savings from subsidy reforms have significantly contributed to the Social Protection and Social Cohesion Fund, which finances important social initiatives. Hassan Boubrik, Director General of the CNSS, highlighted the expansion in social security coverage, reaching 24.7 million Moroccans by the end of 2024, with an increase in daily claims submissions.
To support the growing insured population, the CNSS has implemented measures to enhance service efficiency and boost digitization, with an average claim processing time of nine days. An electronic medical card system is also being introduced to improve healthcare access for insured individuals.
Morocco’s fiscal strategy aims to reduce the budget deficit and achieve debt sustainability by 2027, evidenced by efforts to control spending and enhance revenue collection. By investing heavily in social protection, the government has successfully expanded social security coverage and improved the efficiency of its services. These strategies are crucial for securing fiscal health and advancing social welfare programs.
Original Source: www.moroccoworldnews.com
