In response to questions from lawmakers during a plenary session on the 2025 Finance Bill (PLF), Finance Minister Nadia Fettah outlined the government’s proactive steps to mitigate the impact of recent crises on citizens, noting that these measures have helped reduce inflation to 1.1%.
Fettah highlighted the ongoing implementation of the country’s social protection initiatives, with medical coverage now benefiting a growing number of Moroccans. She also addressed the reduction of income tax (IR), which will cost the government an additional 5 billion dirhams (MAD) and benefit more than 80% of private-sector workers.
On the territorial front, the minister welcomed an increase in the share of value-added tax (VAT) allocated to local governments, rising from 40 billion MAD to 51 billion MAD by 2025 — the first such increase since 1986.
Fettah also provided an update on macroeconomic goals, confirming that the government is on track to reduce the budget deficit to 4% of GDP by 2024, 3.5% by 2025, and 3% by 2026. Public debt is also projected to decrease to 69% of GDP next year.
The minister stressed that the government has successfully tackled five major challenges to strengthen Morocco’s social state. The first is the continued expansion of social protection programs, through which the government is assisting 4 million families.
The second challenge involves direct housing aid, with over 113,000 applications already filed by November 2024. Notably, 26% of applicants are Moroccans living abroad, while 37% are under the age of 35.
Fettah also addressed the third challenge, social dialogue, stating that the government will allocate 20 billion MAD in 2025 to fund agreements stemming from these talks, which aim to enhance the purchasing power of citizens.
The fourth challenge involves ongoing support for citizens’ purchasing power, including subsidies for electricity prices.
For every 100 MAD electricity bill, the government contributes 75 MAD in additional assistance, she said.
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