Morocco's government has outlined its priorities for the 2027 budget, focusing on consolidating the foundations of a sustainable social state. The project, as stated in the 2027 Finance Bill (PLF), aims to restore purchasing power and strengthen social aid. A series of measures targeting compensation, household income, pensions, healthcare, education, and housing are part of the government's strategy. These measures constitute one of five axes structuring the PLF for 2027.
The 2027 PLF allocates 19.4 billion dirhams for continued support for butane gas, sugar, and soft wheat flour prices. This follows the opening of 8 billion dirhams in additional credits in 2026, bringing the total compensation envelope to 22 billion dirhams. Additionally, the state will cover monthly electricity bills up to 100 dirhams. A structural reform of markets and prices is also planned, including the creation of six regional distribution companies and the upgrading of livestock markets and slaughterhouses.
Household income is a key focus of the government's strategy to restore purchasing power. In the public sector, the 2027 PLF notes that social dialogue commitments will require a 50 billion dirham budget by 2027, benefiting nearly 1.25 million civil servants and agents. In the private sector, the minimum wage (SMIG) has increased by 21%, and the agricultural minimum wage (SMAG) by 27% between 2021 and 2026.
To alleviate the tax burden on labor income and encourage declared employment, the government plans a gradual overhaul of the income tax (IR). This reform will be accompanied by an evaluation of its budgetary impact, an expansion of the tax base, and strengthened anti-tax evasion measures. The government also plans targeted assistance for households facing certain expenses.
Direct social aid, benefiting over four million households as of September 2026, will continue to play a significant role in the government's social strategy. The 2027 PLF announces an increase in the minimum monthly aid from 500 to 1000 dirhams, starting with a first step to 600 dirhams in 2027. The management of this aid will be transferred to the National Social Support Agency.
The government also plans to reform the pension system, with a goal of reaching a minimum pension of 3000 dirhams per month. For 2027, the minimum retirement pension will be raised to 1700 dirhams. Additionally, widows will receive a survivor's pension equivalent to 100% of their deceased spouse's pension, up from 50%.
The 2027 PLF allocates 45.4 billion dirhams to the healthcare sector, up from 42.4 billion dirhams in 2026. Several initiatives are planned, including the rehabilitation of healthcare establishments and the operationalization of territorial health groups. The goal is to achieve a ratio of 45 healthcare professionals per 10,000 inhabitants by 2030.
Key points
- The 2027 PLF prioritizes social state foundations, including purchasing power, social aid, and pensions.
- Morocco's government allocates 19.4 billion dirhams for continued support for butane gas, sugar, and soft wheat flour prices.
- The minimum retirement pension will be raised to 1700 dirhams in 2027, with a goal of reaching 3000 dirhams per month.
