Finance Bill 2025: the hustle has begun
The parliamentary hustle for the 2025 Finance Bill got underway last Saturday, October 19, when both chambers met. This followed the Council of Ministers, chaired by HM the King, and the Government Council, which adopted the text.
After a general presentation in plenary session by Nadia Fettah, the Finance Committee of the House of Representatives took over immediately, where the Minister in charge of the Budget provided the MPs with the salient points. Following his presentation, the Finance Committee scheduled a meeting for Thursday to begin the general debate.
In the meantime, Fouzi Lekjaâ addressed again the international situation and, above all, the national context in which this Finance Bill has been prepared, with non-agricultural value added forecast to rise by 3.7% in 2024, after having risen by 3.5% in 2023. The economy is therefore expected to grow by 3.3%. In terms of foreign trade, the data confirm that Morocco retains foreign currency reserves equivalent to 5.5 months of imports. Similarly, in terms of public finances, tax revenues are on the rise. As a result, the positive revenue dynamic will enable us to reduce the budget deficit from 4.3% of GDP in 2023 to 4% in 2024. In addition, inflation was kept under control at 1.1% in the first 8 months of this year.
Final stages of social protection reform
At the same time, the list includes the development of the legislative and regulatory framework to implement the generalization of retirement for self-employed workers and compensation for loss of employment. These are the final axes of social protection reform in 2025, according to the agenda set by HM the King and the framework law.
The first guideline concerns the continued implementation of the Royal Project for Social Protection, with a budget of MAD 37 billion (USD 3.7 billion) next year, i.e. more than MAD 2 billion more than in 2024. In addition to the continuation of Compulsory Medical Insurance (AMO), already benefiting 11 million people, direct social assistance, currently with almost 4 million beneficiary families at the end of last September, will see its monthly allocations increased next year. These will rise from 200 to 250 dirhams (USD 20 to 25) per child for those attending school under the age of 6. For disabled children, the amount will rise from 300 to 350 dirhams. For children not attending school, the amount will be 175 dirhams (USD 17.5) instead of the current 150 dirhams (USD 15), i.e. more than 25 dirhams per child. For orphans, from 350 to 375 dirhams per child.
The total budget for the reform of education, higher education, and vocational training amounts to 103.7 billion dirhams, an increase of more than 12 billion dirhams compared with 2024. The bulk of this will go to national education, with 87 billion dirhams (USD 8.7 billion), compared with 74 billion dirhams (USD 7.4 billion) this year. The aim is to continue implementing the roadmap for reform of the education system 2022-2026. The list includes the continuation of the generalization of preschool to reach 983,654 beneficiaries during this school year. The quality of teaching will also be improved, with the expansion of pioneering schools and the enhancement of the school offering, with the opening of 189 new schools, 68% of them in rural areas.
Mohamed CHAOUI
