Morocco to Overhaul Subsidy System as Rich Benefit More Than Poor, Budget Minister Says

Fouzi Lekjaa indicated that "the charges of the compensation fund reached, between 2015 and 2023, no less than 174 billion dirhams, or an average of 19.4 billion dirhams per year," reports the daily Al Akhbar. The delegate minister in charge of the Budget added that "no less than 47 billion dirhams, or 27% of the total compensation charges, benefit the richest," compared to only 8 billion dirhams for the poorest.

Fouzi Lekjaa stressed the need to target "this subsidy in the 2024 finance bill" in order to allow "60% of Moroccan families who benefited from [a subsidy of] eight billion dirhams through the compensation fund, to benefit from 25 billion dirhams during the year 2024, to reach 29 billion dirhams annually from January 2026."

In addition, "the State pays 10 billion dirhams annually for the generalization of compulsory health coverage to poor and disadvantaged families," said the minister, who also announced that the budget deficit will be "within the limit of 4% of GDP in 2024 and 3.5% in 2025, [then] 3% in 2026."