Morocco's Minister of Economy, Finance, and Public Performance, Fouzi Lekjaa, has stated that financing social priorities requires expanding the economic base and tax base, improving revenue collection, and integrating the informal sector. This approach will allow for a more equitable distribution of the tax burden. Lekjaa made these comments during a plenary session at the House of Representatives, where the 2027 budget bill was being examined and voted on.
The 2027 budget bill, also known as the Projet de loi de finances (PLF) n°60.26, includes an exceptional financial effort of 62 billion dirhams (MMDH) to address social requirements. Lekjaa noted that the decision to reduce the Income Tax (IR) demonstrates that resource mobilization can go hand-in-hand with a more equitable redistribution of the tax burden. He emphasized that fiscal equity requires addressing unfair competition that harms compliant businesses and weakens state resources.
Lekjaa highlighted the importance of integrating informal activities into the formal economy, which should be accompanied by simplified obligations, adapted regimes, and facilitated access to financing, social protection, and markets. The goal is to expand the circle of contributors to financing according to their capacities while allowing them to benefit from the rights and advantages of integration into the formal economy.
The minister reported that tax revenues reached 313.6 MMDH by the end of September, up 11.7% from the same period last year. He described this performance as "remarkable and positive," providing a comfortable margin for financing various commitments. Lekjaa stressed the need to distinguish between recurrent resources and conjunctural elements when approving permanent expenses.
Lekjaa emphasized that the sustainability of social rights financing depends on the economy's ability to produce and create job opportunities. He noted that the public investment effort for 2027 is nearly 400 MMDH. The minister concluded that the priority is to orient this effort towards projects that can remove production obstacles, improve connectivity and logistics, reduce transportation costs, and attract private investment.
The integration of informal activities into the formal economy is crucial for expanding the tax base and financing social spending. Lekjaa reiterated that this approach should be accompanied by simplified obligations and facilitated access to financing, social protection, and markets. This will enable businesses and individuals to contribute to the economy while benefiting from the rights and advantages of formal integration.
The government's 2027 budget plan aims to promote economic growth, improve social welfare, and create job opportunities. The plan's success will depend on its ability to effectively integrate the informal sector, expand the tax base, and allocate resources efficiently. Key points include:
Key points
- The Moroccan government aims to expand its tax base and integrate the informal sector to fund social spending.
- The 2027 budget bill includes an exceptional financial effort of 62 billion dirhams to address social requirements.
- Tax revenues reached 313.6 MMDH by the end of September, up 11.7% from the same period last year.
