For the Finance Bill 2025, the government is tackling a titanic project by clarifying its field of action around 4 projects, notably strengthening the bases of the social state, strengthening investment dynamism and job creation, the continued implementation of structural reforms, and ultimately preserving the sustainability of public finances.
In terms of estimates, there is a budget deficit of 4% in 2024, 3.5% in 2025 and 3% in 2026. Similarly, economic growth rate of 3.3% in 2024 and 4.6% in 2025. Debt volume is less than 70% of GDP by 2026.
In terms of the social situation, the framework note reminds that to support the normalization of the AMO, the government must strengthen health provision. Thus, in 2025 we will see an acceleration of work at the university hospitals of Agadir and Laayoune and work will continue at the university hospitals of Errachidia, Beni Mellal and Guelmim. The aim is for each region to have its own university hospital.
Also read: PLF 2025: Executive promotes social status
At the same time, the government is continuing the process of rehabilitation and upgrading of 1,400 health centers. 872 centers have been rehabilitated. 524 centers will be ready before the end of April 2025.
Thus, by 2025, we see an increase in the level of medical and paramedical supervision to reach 25 professionals/10,000 inhabitants in 2026 and 45 professionals/10,000 inhabitants in 2030.
Regarding direct social assistance, the budget will increase to 26.5 billion dirhams in 2025, as from January 2025 the assistance per child will increase to 250 DH for the first three children in school or under the age of 6, and 175 DH for children not in school, and 375 DH for the first three orphans (of the father) in school or under the age of 6. The year 2025 will be the year of normalization of retirement and compensation upon job loss. *
In terms of education, in 2025, the government will continue education reform and plans to create 4,000 education units and continue the deployment of the Leading Schools Program through the integration of 2,000 primary schools during the 2024-2025 school year, benefiting 1 million additional students.
In addition, the state plans to allocate 16.5 billion dirhams for compensation in 2025. Thus, the government will continue to support basic products, especially butane gas, sugar and flour, by reserving a budget of 16.5 billion dirhams to fund compensation.
The social model is represented by a set of institutions and laws that aim to protect the Moroccan people from the uncertainties of existence. We can identify two main pillars: public services and social security. It therefore covers a wide range of areas such as health, education, retirement, unemployment benefits, the minimum wage or access to social assistance. But this social model is financed by taxes and social security contributions.
Statistics show that a good social model helps reduce inequalities. Economist Lucas Chancel points out that current inequalities in OECD countries are 40% higher than they would have been if the level of redistribution (taxes and social transfers) had remained the same as 30 years ago. International comparisons also show that inequality has grown more rapidly where tax rates have fallen the most (in the United States and the United Kingdom). As many studies show, inequality is detrimental to economic growth.