Morocco expands 20 billion dirham buffer for budget 2026
The Moroccan government plans to expand its 2026 budget framework by 20 billion dirhams to cushion the domestic economy against external shocks linked to geopolitical tensions in the Middle East. The additional allocation aims to protect household purchasing power while keeping the public deficit close to 3 percent of gross domestic product. Authorities frame the measure as a response to persistent volatility in global energy markets and its direct transmission to import-dependent economies.
The supplementary budget is designed to absorb the impact of rising energy costs in a country that relies heavily on imported oil, gas, and coal. It also compensates for the absence of a national refining capacity, which increases exposure to international price fluctuations. A significant share of the funds will support continued subsidies on butane gas, electricity, and public transport. These three items remain central to household budgets and are used as policy tools to limit inflationary pressure on consumers.
Government data indicates that stabilizing electricity and public transport prices already requires around 648 million dirhams per month. Officials argue that the expanded budget margin will strengthen fiscal resilience in case geopolitical disruptions persist and energy prices remain elevated. The measure also reflects a broader strategy to maintain social stability while preventing cost shocks from filtering into domestic inflation.
The fiscal adjustment also covers unexpected costs linked to recent flooding in northern regions and other contingency expenditures tied to external conditions. Despite these pressures, authorities maintain a growth forecast of 5.3 percent for 2026, supported by an agricultural recovery following favorable rainfall. The government expects improved tax revenues to help offset higher spending needs.
On the macroeconomic level, the authorities aim to keep the deficit at around 3 percent of GDP while stabilizing public debt near 66 percent. The strategy combines targeted social support with fiscal discipline, relying on economic recovery and revenue performance to maintain balance in public accounts.
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