Morocco's newly appointed government, headed by Fatima Ezzahra El Mansouri, is set to tackle the country's 2027 budget, but with significant constraints. El Mansouri, who took office on September 29, 2026, is still in the process of forming her team as of October 6, 2026. The government has a legal deadline of October 20, 2026, to submit the budget. Given the time-sensitive nature of the task, the new government may have to build upon the work of its predecessor.
The outgoing government had already presented the general framework for preparing the 2027 budget and the 2027-2029 triennial budget program to the finance committees of both chambers on July 22, 2026. An August briefing note outlined four key priorities: consolidating economic gains, reducing territorial disparities, strengthening the social state, and preserving financial balances. As a result, a significant portion of the budget's architecture has already been established.
The new government can modify priorities and make adjustments, but starting from scratch would require re-examining a already constructed program within a tight timeframe. The constitutional and organic calendar for the budget imposes a precise procedure, making it challenging to introduce drastic changes. Therefore, the new government may opt for continuity in the project's architecture and targeted changes to its content.
One of the reasons for maintaining continuity is the existing social commitments. The social dialogue has already led to significant financial commitments, with the total cost of measures reaching 49.7 billion dirhams in 2027, up from 48.3 billion dirhams in 2026. The average net salary in the public sector has increased from 8,237 dirhams in 2021 to 10,600 dirhams in 2025, while the minimum net monthly salary has risen from 3,258 to 4,500 dirhams.
In the private sector, the non-agricultural SMIG has increased by 20%, and the SMAG has risen by 25%. Reversing these changes would have significant economic, social, and political implications. The new government would need to consider these consequences before making any drastic changes to the budget architecture.
The government's previous efforts have also focused on direct social assistance, which now covers nearly 4 million households and over 5 million individuals. Any changes to this program would require careful consideration of its impact on these beneficiaries.
Ultimately, the new government faces a daunting task in finalizing the 2027 budget. With limited time and a complex set of priorities, it will need to balance its own vision with the existing commitments and constraints. The government's ability to navigate these challenges will be crucial in shaping Morocco's economic and social future.
Key points
- The new government has limited room for maneuver in finalizing the 2027 budget.
- The budget architecture has already been largely established by the outgoing government.
- The government faces significant constraints, including a tight deadline and existing social commitments.
