Morocco plans to boost spending on health and education to nearly 140 billion dirhams under its 2026 draft budget, up from about 128 billion in 2025, as part of a broader effort to expand social protection and accelerate investment-led growth, according to the finance ministry.
The draft finance bill, presented on Sunday, projects economic growth of 4.8% this year, driven by stronger domestic demand and non-agricultural activity, while maintaining inflation at around 1.1% and reducing the fiscal deficit to 3.5% of gross domestic product.
Officials said the budget aligns with King Mohammed VI’s calls to consolidate Morocco’s “emerging economy” trajectory by balancing economic competitiveness with social equity. The plan focuses on four priorities: promoting private investment, strengthening territorial development, expanding social welfare, and preserving macroeconomic stability.
Under the plan, Morocco will intensify reforms in two key social sectors. The health ministry will open new university hospitals in Agadir and Laayoune and complete work on facilities in Rabat, Béni Mellal, Guelmim and Errachidia, alongside the renovation of 90 public hospitals. In education, the government will accelerate preschool expansion, improve learning quality, and reinforce support services for students.
Social transfers will also rise under the government’s flagship direct assistance program, which covers around four million households. Monthly child benefits will increase to between 50 and 100 dirhams for the first three children, alongside new subsidies for orphans and abandoned children. Authorities also plan to generalize pension coverage and unemployment insurance while maintaining direct housing aid for low- and middle-income families.
The finance ministry said investment incentives will remain a central lever for growth. The 2026 budget expands tax and credit facilities for small and medium-sized enterprises and introduces a new technical and financial support mechanism to spur job creation and regional equity. Morocco also aims to attract foreign capital through its green hydrogen offer and an updated investment charter.
Analysts noted that after two years of post-pandemic recovery, the 2026 plan shifts toward structural reform, aiming to modernize public finance and integrate regional economies. The draft maintains Morocco’s cautious fiscal stance while channeling record social spending to sustain domestic demand and protect vulnerable groups.
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