King Mohammed VI of Morocco, accompanied by Crown Prince Moulay El Hassan, chaired a Cabinet meeting devoted to the examination and adoption of the general guidelines for the Draft Finance act for the year 2027.
At the start of the Council’s proceedings, and in accordance with the provisions of Article 49 of the Constitution, the Minister for the Economy, Finance and Public Performance presented to His Majesty the King an overview of the main features of the Draft Finance act for the year 2027.
The Minister emphasised that this act comes at a time of profound instability in the international environment, characterised by the rising cost of geostrategic conflicts, the rise of protectionist tendencies and intensified competition over energy, technology and finance.
In the face of these changes, our country continues, under the leadership of His Majesty the King, to consolidate the foundations of its resilience and strengthen the dynamism of its economy.
Consequently, the national economy is expected to grow by 4.7 per cent by the end of the current year, with inflation kept at 0.7 per cent, alongside a reduction in the budget deficit, which is expected to be brought down to 3 per cent of GDP.
The Draft Finance act for the 2027 financial year is structured around the following five priorities:
Firstly: Restoring purchasing power and consolidating the foundations of a sustainable welfare state: In this context, a structural reform of markets and prices will be undertaken from 2027 onwards, accompanied by measures aimed at supporting citizens purchasing power, continuing the roll-out of universal healthcare cover, whilst ensuring the sustainability of these schemes, increasing direct social assistance, as well as upgrading the public health and education systems and improving access to decent housing through the roll-out of the direct housing support programme.
A new generation of integrated territorial development programmes: this is in accordance with the Royal Guidelines concerning the reorganisation of regional powers, based on an approach centred on clarity and efficiency, as well as on the consolidation of coordination and contractual mechanisms between the State and the regions, alongside the full implementation of the National Charter on Administrative Decentralisation.
Fourthly: Strengthening strategic sovereignty in the areas of water, energy, food and digital sovereignty: so as to ensure strategic water security, accelerate the renewable energy development programme and continue the roll-out of Morocco’s green hydrogen offering, as well as the gradual implementation of the gas infrastructure roadmap, alongside a series of measures aimed at guaranteeing food security and strengthening national digital sovereignty.
Fifth: Building a strong economy capable of financing social and sovereign ambitions, whilst accelerating the implementation of institutional reforms and safeguarding macroeconomic and fiscal balances: with the aim of mobilising the necessary funding to accelerate progress on construction projects, major development initiatives and sectoral strategies underway in various fields, whilst developing new sovereign industrial ecosystems.
The draft Finance act for the year 2027 also pays particular attention to strengthening private investment, through the consolidation of the support mechanisms provided for in the Investment Charter and the continuation of the reform of the Regional Investment Centres, whilst emphasising support for micro, small and medium-sized enterprises.
The Draft Finance act for 2027 also attaches particular importance to the issue of young people, which is one of the most significant and urgent challenges of this phase. This requires moving beyond the multitude of scattered sectoral programmes, which have shown their limitations, in favour of an integrated national policy to support young people’s pathways, from education and training through to employment and housing, thereby guaranteeing them economic and social stability.
And in accordance with the Royal Guidelines, the roll-out of the new generation of integrated territorial development programmes will be accelerated, with budgetary funds of around 2,5 billion euros being allocated.
As we wrote earlier, Morocco Government: a cohesive team with a clear political direction and a focus on results
