Morocco will diversify the financing of its social protection programme in a financial engineering exercise

Morocco is working on a profound restructuring of the financing of the various social programmes that the Kingdom has put in place - and wants to continue to put in place. With the universalisation of health coverage and social support as two pillars on which to base its decisions, Aziz Akhannouch's government will this month begin disbursing direct support and housing payments. The announcement came during the ninth round of the regional forums of the National Federation of Congregational Voters in the Marrakech-Safi region.

Fawzi Lekjaa, the minister in charge of budgets, describes the new model the government has decided to adopt for the financing of the social protection programme as "financial engineering". The law on this aspect, issued in 2021, envisaged two forms of financing: "the first is based on subscription for people who can contribute to the financing of social protection, and the second is based on solidarity for the benefit of people who cannot afford it". The government is now working to adopt new forms and, in addition, to update the existing ones.

In order to incorporate these new methods, one of the most important concerns of King Mohammed VI, who is closely following these initiatives, is local development and, above all, the promotion of local investments that boost territorial development. The annual funding for the social protection programme amounts to 35 billion dirhams (just over 3 billion euros), although the intention is to raise it to 40 billion dirhams (3.6 billion euros).
 
However, the health system, which is facing some difficulties, is not out of sight, Lekjaa said. The latest indicators point to higher expenditure compared to resources, which could jeopardise the "financial sustainability of the basic compulsory health insurance systems". The Social, Economic and Environmental Council has therefore urged the Ministry of Health and the Ministry of Economy and Finance to review the financing standards of the basic health coverage system.

One of the government's ideas is to cancel the compensation fund and transfer the budget allocated to it to social protection. The Moroccan government wants to focus on the most vulnerable groups, and to this end is working on a reform of the Social Support Fund, especially in the progressive increase of subsidised material aid, such as butane gas.

Akhannouch also announced that his government will activate solidarity mechanisms that are expected to provide seven billion dirhams in tax revenues. In this respect, businesses will play a key role, as this revenue will be linked to the "social solidarity contribution on the profits and incomes of companies in the framework of their responsible involvement in the success of this national project".