Moroccan lawmakers debate 2026 budget as Government defends fiscal, social policies

Lawmakers from across Morocco’s political spectrum engaged in heated debate Thursday over the government’s draft 2026 Finance Bill, with the ruling coalition touting strong fiscal performance and the opposition accusing it of social and regional imbalance.

During a plenary session of the House of Representatives, Mohamed Chouki, head of the National Rally of Independents (RNI) parliamentary group, said auditing the country’s tax revenues and public wage bill between 2021 and 2025 would demonstrate the government’s efficiency.

Chouki highlighted that tax revenues rose from 167 billion dirhams in 2021 to nearly 289 billion dirhams in 2025, a 73 percent increase in four years. He attributed this to “improved collection systems and fiscal reforms” that enhanced state efficiency. The national budget, he said, benefited most, growing from 128 billion dirhams to 216 billion dirhamsover the same period.

He also noted that revenues allocated to local governments nearly doubled, reflecting progress in financial decentralization, while wage expenditures in the general budget grew from 140 billion to more than 190 billion dirhams, a 28 percent increase.

“This growth in revenues allowed the government to meet its social and financial commitments while maintaining fiscal balance,” Chouki said.

Coalition parties tout ‘strong performance’

Adil Al-Baytar, a lawmaker from the Authenticity and Modernity Party (PAM), said the current coalition had achieved one of Morocco’s strongest economic performances in the past 25 years. He noted that GDP grew from $115 billion in 2020 to $160 billion in 2024, with an expected $165 billion in 2025, and an average annual growth rate of 3.7 percent.

He contrasted this with the situation before the coalition took office, when the economy was contracting by 7 percent in 2020 and public debt reached 72 percent of GDP.

Opposition: Uneven development, weak delivery

Opposition groups countered that the budget deepens inequality and fails to deliver on key promises.

Abderrahim Chahid, head of the Socialist Union of Popular Forces (USFP) group, said economic growth remains uneven, with three regions—Casablanca-Settat, Rabat-Salé-Kénitra, and Tangier-Tetouan-Al Hoceima—accounting for 58 percent of national output.

He accused the government of failing to create one million jobs, raise women’s participation above 30 percent, or reduce regional inequality, adding that the administration has become “bureaucratic and politically exhausted.”

Idriss Sentissi, leader of the Popular Movement (MP) group, said the government was “fortunate” to benefit from record revenues but questioned whether that had translated into better living conditions. “Billions in revenue have not improved the lives of millions in rural and mountain areas,” he said, citing protests by teachers, doctors and youth.

Sentissi called for faster decentralization and targeted support for women, saying the government had failed to improve women’s economic participation, which remains below 19 percent.

Budget Minister defends policy direction

Responding on behalf of the government, Budget Minister Faouzi Lekjaa said Morocco’s fiscal health was “a collective national achievement” built over decades.

He emphasized that the 2026 Finance Bill aligns with King Mohammed VI’s social vision, noting that the government has transitioned 11 million people from the RAMED welfare system to mandatory health insurance, at a cost exceeding 10 billion dirhams.

Lekjaa said direct social assistance now exceeds 35 billion dirhams annually, alongside reforms to unemployment compensation and retirement schemes.

On the budget’s priorities, he defended allocating 140 billion dirhams to health and education, calling it “a clear political choice.”

He also insisted that Morocco’s tax reform—including a wider application of source-based deductions—has improved fairness and efficiency, and that the government’s fiscal discipline, with a 3 percent deficit target and 3 percent growth, is key to maintaining debt sustainability.

“The social progress we see today is the result of steady, structural reform,” Lekjaa said. “Preserving these achievements requires shared responsibility across government and opposition alike.”