Morocco's Ambitious 2027 Budget Plan
In a significant move to enhance the economic landscape of Morocco, Prime Minister Fatima Zahra Mansouri's government has proposed a budget for 2027 that allocates a remarkable 34,454 job positions. This initiative is primarily aimed at bolstering essential sectors such as health and education while addressing pressing social disparities. The majority of these positions, totaling 33,954, are designated for various ministries and public institutions, with a particular emphasis on the Ministry of Interior, which will receive 14,200 positions, followed by the Ministry of National Defense with 5,500 positions, and the Ministry of Health and Social Protection with 5,400 positions. This budget represents a proactive strategy by the new government to tackle the urgent economic and social challenges facing the nation, particularly in light of rising fuel prices and the need for improved public services.
Tax Reforms and Social Support Initiatives
One of the key elements of the proposed budget is a series of tax reforms aimed at enhancing the purchasing power of Moroccan families. During a parliamentary session, Minister of Economy and Finance, Fouad Lahjouji, highlighted the government's commitment to gradually revising the income tax structure from 2027 to 2031. The planned reforms include raising the annual income threshold exempt from tax from 40,000 dirhams to 60,000 dirhams, reducing the number of taxable brackets from five to three, and decreasing the highest tax rate from 37% to 30%. These measures are designed to alleviate the financial burden on employees and the middle class while encouraging formal employment.
Additionally, the government will increase the minimum pension from approximately 1,000 dirhams to 1,700 dirhams per month beginning January 1, 2027. This initiative, which is expected to benefit around 500,000 retirees, is part of a broader plan to further increase pensions to 2,000 dirhams by 2028 and eventually to 3,000 dirhams in subsequent years. Furthermore, pensions for widows are set to rise at an estimated cost of 7.3 billion dirhams, positively impacting around 431,000 widows.
Another significant aspect of the budget is the government's decision to cover electricity bills for households consuming less than 100 dirhams monthly, a move that will cost approximately 2.8 billion dirhams and benefit around six million subscribers, representing 60% of electricity consumers, particularly in rural areas. The government is also set to raise the minimum direct social support from 500 to 600 dirhams monthly, with plans to gradually increase it to 1,000 dirhams, reflecting an initial expenditure of three billion dirhams.
This budget is not only about financial support but also aims to empower families by facilitating their access to the job market and the formal economy. The government will continue its direct support program for housing purchases, which ranges between 70,000 and 100,000 dirhams, alongside initiatives to combat slum housing and address the condition of approximately 30,000 dilapidated buildings.
On the fiscal side, the budget introduces tax increases targeting specific sectors, particularly the large corporations involved in the import and distribution of fuels, which will see their tax rate rise to 40%. Additionally, a 5% advance tax on goods imported for resale will be implemented, and internal consumption taxes are set to expand. This is coupled with the introduction of exceptional tax exemptions related to the organization of the 2030 FIFA World Cup in Morocco.
The government's revenue projections anticipate a total of approximately 437.4 billion dirhams, derived from an estimated ordinary revenue of around 482.4 billion dirhams. The breakdown of these projected tax revenues includes 203.48 billion dirhams from direct taxes, 185.55 billion dirhams from indirect taxes, 28.4 billion dirhams from registration and stamp duties, and 19.97 billion dirhams from customs duties.
As reported by alaraby.co.uk.
