Morocco’s 2025 Finance Bill to Strengthen Social State Pillars, Finance Minister Says

Economy and Finance Minister Nadia Fettah stated on Saturday that the Draft Finance Bill 2025 prioritizes the reinforcement of social state pillars, particularly through the completion of the national social protection project.    Speaking at a joint plenary session of Parliament, Fettah outlined plans for the generalization of Compulsory Health Insurance (AMO) to cover all social and professional categories, alongside an annual budget of approximately 10 billion dirhams allocated to subsidize contributions for those unable to pay.    Regarding the direct social assistance, the minster said an increase in financial assistance for families. Aid will rise to 250 dirhams for each child among the first three in school or under six years old, and 350 dirhams for children with disabilities. For orphaned children under six or those continuing their studies, support will be set at 375 dirhams per child, ensuring that no family receives less than 500 dirhams monthly. The budget for this program will increase to 26.5 billion dirhams in 2025.    Regarding health system improvements, Fettah reiterated the government’s commitment to comprehensive health reform. A budget of 32.6 billion dirhams is earmarked for Health and Social Protection in the Finance Bill, reflecting an increase of approximately 1.9 billion dirhams from the previous year.    The government also plans to upgrade around 1,400 healthcare facilities, with 872 already completed and an additional 524 expected to finish by 2025.    Fettah highlighted the importance of education in fostering human capital. The education sector will receive an additional 11.7 billion dirhams, bringing the overall allocation to nearly 85.6 billion dirhams in the 2025 budget.    The government aims to generalize preschool education for 983,654 beneficiaries and expand its schools of excellence program to encompass 2,626 primary and 232 middle schools.    On measures to support citizens’ purchasing power, the Finance Minister announced that the government will maintain subsidies on essential goods, including butane gas, refined sugar, and soft wheat flour, with over 16.5 billion dirhams allocated to the compensation fund for 2025.    Additionally, she reaffirmed the government’s commitment to social dialogue, with a budget of 20 billion dirhams set aside to honor social commitments, totaling approximately 45 billion dirhams by 2026.    Fettah also discussed ongoing reforms to the income tax system, including raising the exempt net income threshold from 30,000 dirhams to 40,000 dirhams, which will exempt monthly salaries below 6,000 dirhams.    The minister emphasized the government’s commitment to expedite the implementation of High Royal Instructions aimed at rehabilitating flood-affected areas in southeastern Morocco. Direct financial assistance will be provided to impacted households, with allocations of 80,000 dirhams for homes with partial damage and 140,000 dirhams for those completely destroyed.    Fettah also highlighted ongoing efforts to assist regions impacted by the Al-Haouz earthquake. The government is not only offering direct support to affected families, but is also financing emergency projects through relevant ministerial departments to ensure effective recovery and rebuilding efforts.