PAM backs Morocco's 2027 budget, highlights social spending and public services

PAM backs Morocco's 2027 budget, highlights social spending and public services
Wednesday 28 October 2026 - 17:45

Morocco’s ruling Authenticity and Modernity Party (PAM) defended the government’s proposed 2027 budget on Wednesday, praising increased social spending and investment in public education and healthcare despite the limited time available to the new administration to prepare the finance bill.

Speaking before the House of Representatives Finance Committee, PAM parliamentary group leader Hicham Sabiry said the budget reflected the government’s priorities while adopting what he described as realistic economic assumptions.

The draft projects economic growth of 3.7% in 2027, compared with an estimated 4.7% in 2026, alongside inflation of 1.5%, a cereal harvest of 70 million quintals and butane prices of $600 per tonne.

Sabiry highlighted MAD 44.2 billion allocated to social protection, up 12% from 2026, including MAD 32.7 billion for direct household assistance.

The government plans to increase minimum monthly direct assistance from MAD 500 to MAD 600 in 2027, with a target of MAD 1,000 by the end of its term.

Sabiry also welcomed proposed education spending of MAD 21.3 billion, including funding for 15,934 positions, 204 new schools and 2,000 preschool classrooms.

Healthcare and social protection spending would reach MAD 45.4 billion, a 7% increase, alongside 8,000 new positions and continued hospital upgrades.

He criticized the growing dominance of private education, arguing that the state must guarantee access to quality public schooling regardless of family income.

The PAM leader also backed plans to gradually increase the annual income tax exemption threshold from MAD 40,000 to MAD 60,000 by 2031, a measure he said could benefit 87.1% of employees.

Despite a decline in national unemployment to 9.5% in the second quarter, Sabiry warned that youth unemployment remained high at 27.2%.

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