Morocco aid inequality: 18 billion dirhams favoring the rich

The finding appears in Bank Al-Maghrib’s 2025 annual report. The central bank highlights the persistence of significant social and territorial inequalities, despite resources dedicated to household support.

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According to surveys by the High Commission for Planning cited in the report, average spending per person in the wealthiest fifth of the population is more than seven times higher than that of the least favored fifth. An urban resident also spends, on average, nearly twice as much as a person living in rural areas.

For Bank Al-Maghrib, this situation requires more precise targeting of aid. The institution gives the example of approximately 18 billion dirhams mobilized in 2025 under the compensation scheme, which it describes as a "universal subsidy primarily benefiting the most affluent households."

Billions without targeting

This amount concerns the compensation system and not all social spending undertaken by the State. The criticism focuses on the universal nature of the scheme: subsidized products are accessible to all households, regardless of income, which allows the wealthiest categories to benefit from them as well.

The central bank also challenges certain tax expenditures. The budgetary impact of tax exemptions in force exceeded 32 billion dirhams in 2025. According to the report, some are granted without rigorous evaluation of their relevance and without close monitoring of their implementation.

Bank Al-Maghrib believes that rationalizing these resources has become necessary to reduce inequalities and preserve budgetary flexibility. Public finances must already support spending related to direct social assistance, the expansion of social protection, and the wage bill.

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The institution also recalls that the government has resorted each year since 2022 to opening supplementary credits to cover unforeseen or additional expenses. It therefore calls for more effectively directing available resources toward households that truly need them.