Morocco presents its draft Finance Law for 2025

The Moroccan government has unveiled its draft finance law for the 2025 fiscal period, highlighting four key priorities that reflect its strategic commitment to the country's development. This new draft, detailed in a directive from the prime minister to the various ministerial departments, sets out the roadmap for the executive's future economic agenda. 

As reported by Morocco World News, the directive sets out four main objectives for the next fiscal year: strengthening the social safety net, improving investment and job creation, advancing structural reforms and ensuring the sustainability of public finances. Particular emphasis is placed on accelerating the implementation of the government's programme, improving the monitoring of implemented measures, refining operational and coordination processes, and addressing key issues with greater transparency. 

In the area of social protection, the government plans to strengthen the health system by investing in the renovation and expansion of medical facilities. Among the most prominent initiatives are the continued renovation of regional and provincial hospitals, the reconstruction of the Ibn Sina Hospital in Rabat, and the acceleration of the construction and equipping of medical centres throughout the country.

To improve human resources in the health sector, the government will implement new legislation governing public health functions, with the goal of increasing the number of medical and paramedical professionals to 25 per 10,000 inhabitants by 2026 and 45 per 10,000 inhabitants by 2030. The administration reaffirms its commitment to prioritise human capital development, considering it as the ultimate goal of all public policies and a key benchmark for evaluating government interventions. 

In pursuit of economic prosperity, the directive stresses that ensuring dignity and a decent life for Moroccan families requires a strategic economic policy. This policy will prioritise the promotion of investment, job creation and support for emerging sectors, thus securing the necessary funds to maintain the fundamental pillars of the social state. 

This is reflected in the continued and effective implementation of the Government's direct social assistance programme, operationalised through the National Social Support Agency. Until June 2024, the programme assisted approximately 3.8 million families, including more than 5 million children, at an annual cost of some 25 billion Moroccan dirhams (2.5 billion dollars). From January 2025, support levels will be increased. Support for the first three children who are in school, under the age of six or have a disability will increase to 250 dirhams (25.5 dollars) per child, and to 350 dirhams (35.7 dollars) for those with disabilities.

Out-of-school children will receive 175 dirhams (17.8 dollars). Orphans under the age of six, or those continuing their education, will receive 375 dirhams (38 dollars) per child for the first three, with a minimum family support of 500 dirhams (51 dollars). These changes will bring the total cost of the programme to 26.5 billion dirhams (2.7 billion dollars) by 2025.

The government is also committed to advancing its territorial policies, launching a new phase of territorial convergence and integration that will include various contractual mechanisms and innovative economic initiatives with regional entities, as well as accelerating the implementation of development programmes and regional spatial planning. Other key priorities for the coming years include water, food and energy sovereignty, as well as the protection of purchasing power. 

It is planned to accelerate the completion of seawater desalination plants, with the aim of mobilising more than 1.7 billion cubic metres of water annually, in line with King Mohammed VI's directives to address the water crisis. These facilities are expected to cover more than half of the country's drinking water needs by 2030 and provide irrigation for vast agricultural areas, which will improve national food security.

In addition, the government will continue to implement the "Green Generation" strategy to harness advances in the agricultural sector and ensure its resilience to climate change. Meanwhile, it strives to keep public finances on a sustainable trajectory, aiming to reduce the budget deficit to 4 per cent of Gross Domestic Product (GDP) by 2024, 3.5% by 2025 and 3% by 2026. It will also manage debt levels, with the goal of keeping them below 70% of GDP by 2026. 

This approach is designed to restore the financial margins needed to continue with various development projects, while preserving the momentum of public investment, a crucial element to strengthen the social state. 

In line with these priorities, the government anticipates achieving a growth rate of about 4.6% in 2025, compared to the 3.3% projected for 2024.

The Moroccan government's draft finance law for 2025 therefore reflects a determined focus on strengthening the social state through strategic management of investment, social protection and fiscal sustainability. With clear goals to improve health infrastructure, foster regional development and maintain economic stability, Morocco is preparing for continued growth and greater resilience in the face of future challenges.