Morocco’s ‘26 budget: A sectoral deep dive into social reform and security priorities

Morocco’s 2026 Finance Bill is structured around an ambitious push for social reform and robust security, allocating massive resources to sectors mandated by recent royal directives while strategically investing in national infrastructure and water security. 

The plan, which targets a total public investment of MAD 380 billion, highlights a delicate balance between answering public demands for better social services and maintaining traditional state capacity.

Health and Education take center stage

In response to sustained public pressure, the government has directed the largest categorical allocation toward human capital development. The combined budget for the health and education sectors will exceed MAD 140 billion, a significant increase of MAD 21 billion from 2025. This monumental investment is seen as a cornerstone of the “Emerging Morocco” vision.

Health Sector Priorities (MAD 42.4 Billion)

The health sector alone is allocated MAD 42.4 billion, an increase of nearly MAD 10 billion over the previous year. The focus is on strengthening universal health coverage and improving access to specialized care.

• Infrastructure: The budget accelerates efforts to address infrastructure gaps through construction and completion projects:
  • Completion and equipping of the Ibn Sina University Hospital Center (CHU) in Rabat.
  • Operationalization of new CHUs in Agadir and Laayoune.
  • Continuation of construction for CHUs in Beni Mellal, Guelmim, and Errachidia.
  • Renovation of approximately 1,600 health centers over three years, budgeted at about MAD 6.9 billion.
• Recruitment: 8,000 new positions are mandated for the Ministry of Health and Social Protection, a crucial step in alleviating staffing shortages.

Education Sector Priorities (MAD 97.1 Billion)

The education sector receives the larger share of the combined social budget, totaling MAD 97.1 billion, an increase of MAD 11.5 billion from 2025. This spending prioritizes quality and access across all levels:

• Preschool and Primary: Expansion of early childhood education by creating around 4,800 new classrooms. The Pioneering Schools program is set to expand nationwide, covering 6,626 primary schools in the 2026–2027 school year.
• Vocational Training: The plan includes significant expansion with 27 new vocational training institutes and the operationalization of three new Skills and Professions Cities in Dakhla-Oued Ed-Dahab, Marrakech-Safi, and Guelmim-Oued Noun.
• Higher Education: MAD 17.3 billion is earmarked to enhance the attractiveness of Moroccan universities and better link research with national priorities and the job market.
• Recruitment: 19,344 new positions are allocated to the sector, reinforcing both teaching quality and support services.

Security and state capacity, key recruitment drivers

Despite the headline social spending, the traditional sovereign sector e.i security and internal administration dominate the creation of new public service jobs, highlighting the government’s commitment to internal stability and territorial governance.

The budget proposes the creation of 36,895 new public sector positions. The largest hiring quotas are allocated as follows:

Infrastructure, resource security

Beyond social and security priorities, the budget maintains significant investment in structural projects vital for connectivity, economic growth, and resource management.

• Water Security: Addressing persistent water stress is a top priority, with MAD 16.4 billion allocated to projects including the construction of 16 major dams and the launch of two new ones, in addition to accelerating inter-basin water transfer projects. Desalination efforts are also supported, targeting a capacity of 1.7 billion cubic meters annually.
• Transport and Logistics: Investment accelerates projects intended to achieve balanced territorial development, such as:
  • Expansion of motorways and airports.
  • Completion of the Dakhla Atlantic Port and the Nador West Med Port.
  • Funding for the Roads Special Fund at MAD 3 billion.
• Green Energy: The plan seeks to accelerate the shift toward green energy, including the implementation of the Green Hydrogen Moroccan Offer and the launch of the country’s first liquefied natural gas (LNG) terminal at Nador West Med.

Financial allocations for territorial equity

The budget also dedicates substantial funds through specialized Treasury Accounts (CSTs) to support social cohesion and local government finances, even if the per-region distribution remains aggregated:

• VAT Transfers: The VAT Revenue Share for Territorial Collectivities is allocated a massive MAD 57.59 billion, representing the largest financial transfer to local governments.
• Social Safety Net: The Social Protection and Social Cohesion Support Fund leads all CSTs with an allocation of MAD 36.49 billion, demonstrating a top-tier commitment to the generalization of mandatory health insurance (AMO) and direct social aid.
• Regional Development: Funds addressing structural disparities include the Integrated Territorial Development Fund at MAD 5 billion and the Earthquake Impact Management Fund at MAD 5 billion, supporting major reconstruction efforts.