Morocco Aims to Reduce Budget Deficit Below 67% by 2027

Morocco aims to reduce its budget deficit below 67% by 2027, focusing on sustainable debt management and strong social protection investments. The government plans to control public spending while increasing revenues, alongside reported progress in reducing the budget deficit and expanding social security coverage.

Morocco is set to reduce its budget deficit to below 67% by 2027, as announced by Nadia Fettah, the Minister of Economy and Finance. During her presentation before the Finance and Economic Development Committee, she emphasized the government’s commitment to fiscal discipline and sustainable debt management while continuing to invest in social protection initiatives.

To achieve these financial goals, Morocco will establish a medium-term debt target, control public spending, and enhance revenue generation. Minister Fettah highlighted the current trend of decreasing debt ratios, noting a projected decrease in budget deficit by 0.5% of GDP in 2024 compared to 2023. Furthermore, fiscal strategies have successfully created funding avenues for social programs.

The government’s financial approach has raised MAD 15 billion by reforming over 100 social programs and collected MAD 11 billion through tax revenues. Additionally, a significant allocation exceeding MAD 71 billion from the public budget for 2023-2025 is directed toward expanding social security and direct financial support initiatives. Reforms in subsidies have also bolstered the Social Protection and Social Cohesion Fund, facilitating the financing of crucial social initiatives.

Hassan Boubrik, the Director General of the National Social Security Fund (CNSS), reported positive developments in social security coverage, with about 24.7 million Moroccans expected to be covered by the end of 2024. He indicated that daily claims submissions are around 110,719, prompting CNSS to implement improvements in service efficiency and digital solutions. The average processing time for claims is currently nine days, with an upcoming electronic medical card system to enhance healthcare access.

In summary, Morocco’s commitment to reducing its budget deficit while focusing on debt sustainability and social protection highlights a proactive financial strategy. Through fiscal discipline, revenue generation, and significant investments in social programs, the government aims to improve financial stability and enhance the welfare of its citizens by 2027. The growing social security coverage and enhancements in service efficiency further affirm the positive trajectory of Morocco’s financial and social initiatives.

Original Source: www.moroccoworldnews.com