As in 2021, Morocco appears set to follow a scenario in which the Finance Bill will be prepared by the outgoing government but implemented by the next administration formed after the elections, giving the 2027 budget a transitional character.
In line with the royal guidelines, particularly those set out in the Throne Day Speech calling for a new phase of development based on consolidating achievements and continuing major reforms, the budget circular identifies several key priorities.
These include strengthening Morocco’s economic gains to reinforce its position among emerging economies while continuing efforts to reduce regional and social disparities through an integrated development approach.
Strengthening the social state remains another central priority, alongside continuing major structural reforms and preserving macroeconomic stability.
Major investment in infrastructure
The government intends to maintain a high level of public investment, particularly in strategic infrastructure projects.
Flagship projects include the expansion of the motorway network, which now spans nearly 1,800 kilometers, the continuation of the Rabat-Casablanca Continental Motorway, and the Guercif-Nador West Med corridor.
Road infrastructure will also be strengthened through projects such as the Ain Aouda-Oued Zem expressway and the connection of Nador West Med Port to the national road network.
The railway sector is set for significant progress with the extension of the high-speed rail line between Kenitra and Marrakech, the development of regional express rail (RER) networks in Casablanca-Settat, Rabat-Salé-Kenitra, and Marrakech-Safi, and the modernization of the railway fleet.
To integrate rail and air transport, Casablanca Airport will be connected to the high-speed rail line via a new railway station. This station is designed as an intermodal hub, linking road transport, high-speed rail, and regional rail services.
Addressing water stress remains a government priority. The circular calls for continued dam construction and enhanced water transfers between river basins.
The national seawater desalination program will also continue, aiming for a production capacity of 1.7 billion cubic meters by 2030.
In the short term, three major desalination plants—in Dakhla, Safi, and Casablanca—are expected to become operational.
Concurrently, new desalination projects powered by renewable energy are being developed in the Oriental, Souss-Massa, Tangier, Guelmim-Oued Noun, and Rabat-Salé-Kenitra regions, with commissioning planned between 2029 and 2030.
The 2027 Finance Bill will also support the implementation of the new Investment Charter, with a particular focus on job creation and directing investment towards priority sectors.
Attention will be given to very small, small, and medium-sized enterprises (VSMEs) by improving access to financing, introducing simplified guarantee mechanisms, and expanding access to public procurement.
The circular also highlights a new phase of advanced regionalization, with financial transfers to the regions expected to reach at least 12 billion dirhams annually from 2027.
Support measures aimed at protecting purchasing power will be maintained, including subsidies for butane gas, sugar, and flour, at an estimated cost exceeding 13 billion dirhams.
The government will also continue its program to eliminate substandard housing through large-scale rehousing operations, particularly in the Casablanca-Settat, Marrakech-Safi, and Rabat-Salé-Kenitra regions.
Fiscal discipline
On the macroeconomic front, the circular emphasizes the need to preserve macroeconomic stability by continuing the gradual reduction of the budget deficit and maintaining public debt at sustainable levels.
To achieve this, the government calls for greater rationalization of public spending and more robust mobilization of state resources. Ministries and public institutions are instructed to prepare their budget proposals in line with available financial resources and to strictly prioritize their needs.
Controlling the public wage bill is a key focus, with the creation of new positions to be strictly limited and justified by genuine needs related to implementing reforms or improving public services.
The circular also mandates tighter control of operating expenditure by limiting spending to essential needs. This includes reducing costs associated with water and electricity consumption, vehicle rentals, and the renovation and equipment of administrative buildings. Spending on official travel, missions, accommodation, and events is also to be strictly controlled.
For public investment, priority will be given to projects initiated under royal instructions or covered by agreements with international partners, while accelerating the implementation of ongoing projects. Investment proposals must also reflect the actual implementation capacity of government departments and their budget management performance.
The government also calls for greater coherence and complementarity between projects, particularly at the territorial level, with special attention given to rural, mountainous, and oasis areas.
The circular further stresses the need to resolve land issues before launching projects, in accordance with legislation governing expropriation, while reducing legal disputes through preventive measures and alternative dispute resolution mechanisms in public contracts.
In the same effort to rationalize spending, ministries are instructed to keep expenditure on the acquisition of vehicles and the construction and equipment of administrative buildings to the strict minimum.
The circular sets expenditure ceilings for each ministry and institution for both operating and investment budgets. The departments concerned are required to submit their proposals to the Ministry of Economy and Finance by August 31, 2026, ahead of the final allocation of budget envelopes to be included in the 2027 Finance Bill.
Overall, the 2027 Finance Bill is presented as both a budget of continuity and one of transition: continuity because it extends the major reforms launched under the royal vision, and transition because it will be prepared by the outgoing government and implemented by the next administration.
