Morocco is set to reduce its budget deficit to below 67% by 2027, focusing on fiscal discipline, enhancing revenues, and sustaining investment in social programs. Recent efforts have already shown a decrease in the deficit and an increase in social security coverage, providing essential support to its citizens. The rollout of efficient claim processing and new technologies aims to further improve the social security system.
Morocco’s economy is undergoing significant reform, with a target to reduce the budget deficit to below 67% by the year 2027. Nadia Fettah, the Minister of Economy and Finance, emphasized in a statement before Parliament’s Finance and Economic Development Committee that the government’s fiscal programming for 2025-2027 will focus on sustainable long-term debt management while ensuring robust investments in social protection initiatives.
To meet this deficit reduction goal, Morocco plans to enhance fiscal discipline by establishing a medium-term debt target and tightening public expenditure, all while increasing revenue streams. Fettah indicated that, as of 2024, there had already been a notable decrease in the budget deficit, which fell by 0.5% of GDP compared to the previous year, attributing this success to improved revenue collection strategies.
The government’s financial strategy has yielded significant results, raising MAD 15 billion through modifications to over 100 social programs and an additional MAD 11 billion via tax revenue enhancements. From the public budget between 2023 and 2025, more than MAD 71 billion will be allocated to broaden social security measures and provide direct financial support.
Fettah also noted that savings generated from subsidy reforms have greatly contributed to the Social Protection and Social Cohesion Fund, facilitating the funding of critical social initiatives. Hassan Boubrik, the Director General of the National Social Security Fund (CNSS), reported that social security coverage has expanded significantly, with 24.7 million Moroccans insured as of the end of 2024, and daily claims submissions reaching 110,719.
In response to the increasing number of insured individuals, the CNSS is implementing new strategies to enhance service efficiency and digitization of processes. Claims processing times have been reduced to an average of nine days, and an electronic medical card system is in development to improve healthcare accessibility for all insured individuals.
Overall, Morocco’s fiscal strategy seeks a reduction in budget deficits while ensuring robust investments in social security. By implementing fiscal discipline and enhancing operational efficiency within social programs, the government hopes to achieve long-term economic sustainability and improved social welfare for its citizens. The successful expansion of social security indicates a positive trajectory in providing for the needs of all Moroccans as the country works towards its financial objectives.
Original Source: www.moroccoworldnews.com
