Morocco Aims to Reduce Budget Deficit Below 67% by 2027

Morocco aims to reduce its budget deficit below 67% by 2027, focusing on fiscal discipline, increased revenues, and social protection investments. The government reported a decrease in the budget deficit and significant growth in social security coverage, supported by various financial reforms.

Morocco’s Minister of Economy and Finance, Nadia Fettah, announced that the nation’s budgetary framework for 2025-2027 will prioritize reducing the budget deficit and ensuring the sustainability of long-term debt, while also investing in social protection. During her address to the Finance and Economic Development Committee in Parliament, she highlighted the goal of lowering the Treasury’s debt ratio to below 67% by 2027.

To realize this target, Morocco intends to strengthen fiscal discipline. This includes implementing a medium-term debt target, managing public expenditures judiciously, and enhancing revenue generation. Minister Fettah noted that there has been a notable improvement in revenue collection and a decrease in the budget deficit, which is projected to reduce by 0.5% of GDP in comparison to 2023. Additionally, she recognized the government’s efforts to create fiscal space for social protection financing programs.

The financial strategy has successfully raised MAD 15 billion through reforms across over 100 social programs, alongside generating MAD 11 billion through tax revenues. Furthermore, more than MAD 71 billion from the public budget allocated for 2023-2025 is designated for the expansion of social security and direct financial support initiatives. Savings from subsidy reforms have significantly contributed to strengthening the Social Protection and Social Cohesion Fund, enabling the financing of essential social initiatives.

Hassan Boubrik, the Director General of the National Social Security Fund (CNSS), reported substantial progress in social security coverage, with 24.7 million Moroccans covered by the end of 2024. Daily claims submissions have reached 110,719. To accommodate the increasing insured population, the CNSS has implemented measures aimed at enhancing service efficiency and digitalization, including an average processing time of nine days for claims and an impending launch of an electronic medical card system to improve healthcare access.

In summary, Morocco is actively pursuing strategies to lower its budget deficit below 67% by 2027. The government is emphasizing fiscal discipline, revenue enhancement, and the expansion of social protection programs. Through the successful implementation of reforms and investments, the nation aims to create a sustainable financial environment while improving social security coverage and efficiency.

Original Source: www.moroccoworldnews.com