A recent report by the Finance and Economic Development Committee in Morocco's House of Representatives has sparked debate among lawmakers and parties regarding measures to support citizens' purchasing power. The report, presented during a general session, discussed the government's proposed financial measures, including the creation of six regional companies or professional platforms for collecting and marketing agricultural products. Some lawmakers praised these proposals, while others called for immediate action to protect citizens' finances.
The report highlighted that some lawmakers welcomed proposals to reduce food prices to reasonable levels by creating regional companies or platforms for collecting and marketing agricultural products. They also supported updating 12 wholesale markets for vegetables and fruits, reforming meat and fish distribution channels, and developing preservation and refrigeration capacities. However, other lawmakers expressed dissatisfaction with these measures, stressing the need for rapid price control and monitoring.
The report also mentioned that lawmakers discussed the proposed gradual review of income tax, which aims to raise the exemption threshold for net income from 40,000 dirhams to 60,000 dirhams. Some lawmakers praised this measure, while others considered it unfair to certain groups, arguing that it benefits higher-income brackets. They suggested adopting a participatory approach through social dialogue to address these concerns.
Regarding pensions, the report noted that lawmakers welcomed measures to gradually increase the minimum pension to 1,700 dirhams starting in 2027 and to 3,000 dirhams by 2031. They also supported increasing the survivor's pension from 50% to 100%. However, some lawmakers questioned whether public sector retirees would be eligible for these benefits.
The report also discussed other measures to support purchasing power, including the state's coverage of electricity bills up to 100 dirhams per month and continued support for basic food prices. Lawmakers also reviewed the direct social support system, which would increase monthly support from 500 dirhams to 600 dirhams in 2027 and to 1,000 dirhams by 2031.
The Finance and Economic Development Committee's report noted that lawmakers expressed understanding for the strategic role of macroeconomic and financial balances but stressed that these balances should not come at the expense of citizens' rights and dignity. They called for clarification on funding sources and real financial margins to implement new government commitments.
According to the report, the government expects a 3.7% economic growth rate and a 3% budget deficit, based on assumptions including an inflation rate of 1.5% and a grain harvest of 70 million quintets. The report also mentioned that the Minister of Economy, Finance, and Public Efficiency, Fouzi Lekjaa, welcomed parliamentary proposals and was open to discussing all provisions.
Key points
- The Moroccan government has proposed several financial measures to support citizens' purchasing power, including income tax reform and increased pension benefits.
- Lawmakers have debated the effectiveness of these measures, with some calling for immediate action to control prices and protect citizens' finances.
- The government aims to achieve a 3.7% economic growth rate and a 3% budget deficit, while ensuring that macroeconomic and financial balances do not compromise citizens' rights and dignity.
