Moroccan Government Allocates Large Share of GDP to Vulnerable Social Categories in 2025 Finance Bill

The Moroccan government plans to allocate a significant portion of the Gross Domestic Product (GDP) to vulnerable social categories as part of the 2025 Finance Bill. These substantial allocations, representing about 10% of GDP, aim to strengthen the social state and support the most vulnerable citizens through several major initiatives.

The main components of the social allocations include social dialogue, for which the government has allocated a budget of 20 billion dirhams to implement the results of social dialogue in 2025. The generalization of Mandatory Health Insurance continues, with an annual budget of about 10 billion dirhams allocated to finance contributions for those unable to pay.

Regarding direct social support, the budget for the direct social assistance program will increase to 26.5 billion dirhams in 2025. This support includes monthly allowances for school-going children, non-schooled children, and children with disabilities, with amounts ranging from 175 to 350 dirhams per child.

The government has also launched a direct housing support program, with more than 113,000 applications submitted by early November 2024. The income tax reform will cost over 5 billion dirhams additional and will benefit more than 80% of private sector employees.

Additionally, the government has allocated a budget of 32.6 billion dirhams for health and social protection, an increase of about 1.9 billion dirhams compared to 2024. 85.6 billion dirhams will be mobilized to support the reform of the education system. The government will continue to support citizens’ purchasing power by maintaining subsidies on basic products, with more than 16.5 billion dirhams allocated to the Compensation Fund.

These large allocations from GDP to vulnerable social categories reflect the Moroccan government’s commitment to strengthening the social state and improving the living conditions of the most disadvantaged citizens. These measures are part of a long-term vision aimed at enhancing social cohesion and reducing inequalities in Morocco.

About محمد الفاسي