Morocco's Budget Shift: Health, Education, and Equality Take Center Stage

Big Changes in the Pipeline

Morocco is preparing to make significant changes in its upcoming budget, with a strong emphasis on health and education. The push comes amid growing public demand for improved services, fueled by youth protests expressing dissatisfaction with the current state of affairs.

The government is responding by planning to increase spending in these critical areas. However, it's not just about injecting more funds—it's about better allocation and transparency.

A Closer Look at the Budget

Healthcare Improvements

Finance Minister Nadia Fettah Alaoui emphasized the need for better communication about existing initiatives. She also mentioned reallocating funds from other projects to ensure quick, visible improvements, such as upgrading local hospitals to reduce long-distance travel for treatment.

Reducing Regional Inequalities

The budget will also address regional disparities, aligning with King Mohammed VI's vision to prioritize mountain and oasis regions. The goal is to balance development without disrupting the country's economic stability.

Economic Reforms on the Horizon

Foreign Exchange Regime Adjustments

Morocco is exploring changes to its foreign exchange regime. The plan includes introducing medium-term inflation targeting, aiming for a 2%-3% inflation rate by late 2026 or early 2027. This shift moves away from the current annual target.

The dirham, currently pegged to a basket of euros and dollars, has been allowed to float within a small range since 2018.

Debt Sales: No Immediate Plans

While Morocco has no immediate plans for international debt sales, it expects to continue issuing debt regularly in the future.