Direct social assistance: Financing available as early as December
Social protection reaches a new level. After the generalization of Compulsory Medical Insurance (AMO), including for former beneficiaries of the RAMED (medical coverage scheme for the underprivileged), preparations are underway for the entry into force this December of Direct Social Assistance (ASD), as announced by the King at the opening of the Parliament fall session.
On Monday October 23, the Head of Government addressed both Houses of Parliament, in accordance with Article 68 of the Constitution, to outline the content of this major new royal project. What lies ahead is a veritable social revolution.
The Head of Government made it clear that his main concern is to successfully implement the Royal guidelines. To achieve this, it is imperative to guarantee the financial sustainability of the project, and to control the system for targeting beneficiaries. Implementation of this project will require the mobilization of 25 billion Dirhams (USD 2.5 billion) by 2024. This amount is included in next year’s finance bill, currently before the House of Representatives. According to the timetable, an annual budget of 29 billion Dirhams (USD 2.9 billion) will be required from 2026 onwards. Added to this is the budget of almost 10 billion dirhams that the Government allocates each year to cover the cost of extending AMO to poor and vulnerable families and former RAMED beneficiaries, representing an annual budget of around 40 billion dirhams (USD 4 billion) by 2026, allocated to the two components of medical coverage and direct social assistance for the extension of social protection.
In any case, the financing scheme has been finalized. In fact, the government has taken a series of measures to guarantee the mobilization of 20 billion dirhams over the next three years from the Government’s own resources. To this must be added 6 billion Dirhams (USD 600 million) from tax revenues relating to the Social Solidarity Contribution on corporate profits and income, as part of their responsible commitment to the success of this national project. Also on the menu are tax revenues from the activation of the full discharge contribution on assets and cash held abroad. Not forgetting the mobilization of 15 billion Dirhams (USD 1.5 trillion) through the rationalization, consolidation, and redirection of financial allocations to a range of existing social programs, in line with royal directives. The financing plan also provides for the mobilization of 9 billion Dirhams (USD 900 million) from the Social Cohesion Fund reserve for the year 2024. To complete the financing round, 12 billion dirhams will have to be gradually recovered by 2026 and after the end of a three-month period from the start of direct aid disbursements, through the gradual reform of the Caisse de Compensation (subsidy fund for basic foodstuffs), in line with the provisions of the framework law on social protection.
The price of a 12-kilogram gas cylinder is set to rise. This increase will take effect from next April, at a rate of 10 Dirhams each year, and will end in 2026. At present, the price of this butane gas cylinder is 40 Dirhams (4 US dollars), for a real cost to the Government of 130 Dirhams (USD 13). Curiously, when the Head of Government made this announcement, M.P.s applauded.
Caisse de Compensation (subsidy fund for basic foodstuffs), in line with the provisions of the framework law on social protection.
The price of a 12-kilogram gas cylinder is set to rise. This increase will take effect from next April, at a rate of 10 Dirhams each year, and will end in 2026. At present, the price of this butane gas cylinder is 40 Dirhams (4 US dollars), for a real cost to the Government of 130 Dirhams (USD 13). Curiously, when the Head of Government made this announcement, M.P.s applauded.
Mohamed CHAOUI
