Morocco's Historic Budget Presentation Led by Fatima Ezzahra Mansouri
On October 23, 2023, the Moroccan government, now led by a woman for the first time, Fatima Ezzahra Mansouri, unveiled its inaugural budget proposal, which aims to mobilize a substantial 62 billion dirhams (approximately 5.6 billion euros) to fulfill part of its electoral promises focused on social initiatives. The proposed budget anticipates a GDP growth of 3.7% by the year 2027, reflecting the government's commitment to enhancing the welfare of its citizens.
Key Features of the 2027 Budget Proposal
Fouzi Lekjaa, the Minister of Economy and Finance, presented the budget project to both chambers of Parliament during his first address in this capacity, outlining a series of social measures while pledging to maintain the budget deficit at 3%. This presentation comes just a day after the swearing-in of the new government, which is headed by the liberal Party of Authenticity and Modernity (PAM), alongside the nationalist Istiqlal Party and the socialist parties PPS and USFP, marking a shift towards more socially-oriented policies.
In his address, Lekjaa emphasized that the budget aims to harness available resources to meet governmental commitments amidst a backdrop of international uncertainty, rising conflict costs, increasing protectionist trends, and disruptions in supply chains. He stated, "Our responsibility is to ensure that government commitments translate into a tangible improvement in citizens' purchasing power, fairer social protection, and territorial development that reduces disparities between regions while creating clear opportunities for youth in education and employment."
The budget plan includes a progressive reform of the income tax system, set to take effect in January 2027, which proposes a complete exemption for salaries below 10,000 dirhams (around 910 euros) per month. Additionally, it encompasses incremental increases in pensions and support for widows—benefiting an initial 431,000 women—along with exemptions for water and electricity bills under 100 dirhams (9 euros), and a training program tailored for 100,000 young individuals to meet business needs.
The government also plans to implement measures to reduce prices for essential products by lowering intermediary costs. Significant boosts to health and education budgets are anticipated, with health funding increasing to 45.4 billion dirhams (4.1 billion euros) and the creation of 8,000 jobs, while the education sector will see resources totaling 121.3 billion dirhams (11 billion euros) and the establishment of 17,874 new positions. Key objectives include universalizing primary education, combating school dropouts, and providing alternatives for young people who leave school prematurely.
In his presentation, Lekjaa also addressed the Western Sahara conflict, describing it as a fundamental principle of governmental action. He praised Morocco's advancements in defending its territorial integrity under the reign of King Mohammed VI, asserting that the 2025 United Nations Security Council resolution endorsed Morocco's autonomy proposal as the sole basis for a definitive solution to the conflict surrounding the former Spanish colony. The minister expressed gratitude to the military, security forces, and local administration for their roles in preserving territorial integrity and ensuring the country's security and stability. As reported by swissinfo.ch.
