Morocco’s government is targeting economic growth of 4.1% and a budget deficit of 3% of gross domestic product in 2027 as it seeks to balance major infrastructure and social spending programs with fiscal discipline ahead of legislative elections, according to budget guidelines issued by Prime Minister Aziz Akhannouch.
The assumptions are outlined in a circular, launching preparations for the 2027 Finance Bill, the last budget of the current government’s term before voters head to the polls on Sept. 23.
The government expects growth to moderate to 4.1% in 2027 from an estimated 5.3% in 2026, with non-agricultural sectors remaining the main engine of expansion.
Under the fiscal framework, the budget deficit is projected to narrow to 3% of GDP in 2027 from 3.5% in 2025, while public debt is expected to fall to 65% of GDP from 66% in 2026. Authorities aim to reduce the debt ratio further to 63% by 2029.
The government’s strategy rests on continued revenue growth and tighter control of public spending, including limits on hiring, operating costs and transfers to public institutions.
At the same time, Rabat plans to maintain large-scale investment programs, including motorway expansion, high-speed rail extensions, airport development and regional transport projects.
The budget framework also preserves key social programs. Direct social assistance now covers around 4 million families and 5 million children, while mandatory health insurance has been expanded to cover 87% of the population. The cost of measures agreed under social dialogue deals, including wage increases, is expected to reach 49.7 billion dirhams ($5.5 billion) in 2027.
The government has also earmarked 13.2 billion dirhams for subsidies on butane gas, sugar and flour.
