Morocco sets ambitious goal to reduce budget deficit below 67% by 2027

Morocco's government is embarking on an ambitious plan to balance economic stability with essential social welfare investments. Minister of Economy and Finance, Nadia Fettah, recently announced that the country’s budgetary programming for 2025-2027 will prioritize reducing the budget deficit while ensuring the sustainability of long-term debt.

In her address before the Finance and Economic Development Committee in Parliament, Fettah emphasized the government's commitment to lowering the Treasury’s debt ratio to below 67% by 2027. To achieve this goal, Morocco intends to reinforce fiscal discipline, establish a medium-term debt target, and effectively manage public spending while simultaneously increasing revenues.

Fettah highlighted notable progress in revenue collection and deficit reduction in 2024, revealing a decrease in the budget deficit by 0.5% of GDP compared to the previous year. She also pointed out the government's achievements in creating fiscal space to support social protection programs.

The financial strategy has yielded MAD 15 billion through reforms in over 100 social initiatives, in addition to MAD 11 billion raised via tax revenues. Furthermore, more than MAD 71 billion from the public budget for 2023-2025 has been dedicated to expanding social security and direct financial support programs.

Fettah noted that savings from subsidy reforms have significantly contributed to bolstering the Social Protection and Social Cohesion Fund, which finances vital social initiatives.

Hassan Boubrik, Director General of the National Social Security Fund (CNSS), reported impressive growth in social security coverage, with 24.7 million Moroccans insured by the end of 2024. Daily claims submissions have reached 110,719, prompting the CNSS to implement measures aimed at enhancing service efficiency and digitization. Average processing times for claims now stand at nine days, and an electronic medical card system is slated for launch to improve healthcare accessibility.