Casablanca – Morocco has officially launched a new phase in the modernization of its public finance system with the adoption of a Strategic Framework for Public Financial Management (PFM) Reform covering the period 2026–2032. Announced by the Ministry of Economy and Finance, the initiative sets out a long-term roadmap aimed at strengthening financial governance, improving efficiency, and reinforcing transparency across public institutions.

The framework marks the first time Morocco has introduced a unified and structured national strategy dedicated specifically to public financial management. It is designed to consolidate progress achieved in recent years while addressing persistent challenges and aligning reforms with the country’s broader development priorities, particularly those outlined in the New Development Model.

A structured response to evolving economic challenges

The new strategy comes at a time when Morocco, like many economies, faces increasing pressure on public finances due to global economic uncertainty, climate risks, and the expansion of social policies. In this context, authorities are seeking to enhance the resilience and effectiveness of public spending while maintaining fiscal discipline.

The framework serves as a central tool to guide reforms and ensure coherence across government actions. It also aims to strengthen confidence among international partners and investors by demonstrating Morocco’s commitment to sound financial management and long-term sustainability.

Built on international evaluation and national consultation

The strategy draws heavily on the findings of the 2024 Agile Public Expenditure and Financial Accountability (PEFA) assessment. Conducted in partnership with major international institutions, including the World Bank, the African Development Bank, the European Union, and the French Development Agency, the evaluation confirmed the overall robustness of Morocco’s PFM system.

Significant progress has been recorded in areas such as budget credibility, improved discipline in budget preparation, stronger control over execution, and the integration of gender-responsive budgeting. However, the assessment also identified areas requiring further improvement, including the need for better budget predictability, enhanced transparency, and more efficient resource allocation.

To address these issues, the Ministry of Economy and Finance led a broad consultation process involving key national stakeholders, including the Court of Accounts, Parliament, and various government departments. This participatory approach helped define priorities and ensure alignment with national needs.

Five pillars guiding reform

The Strategic Framework is structured around five main pillars, each targeting a specific dimension of public financial governance.

The first pillar focuses on performance. Authorities aim to strengthen performance-based budgeting by linking public spending more closely to measurable outcomes. This includes transitioning toward program-based budgets centered on impact, improving cost analysis, and reinforcing internal management controls. The scope of performance evaluation will also be expanded to include state-owned enterprises, ensuring a more comprehensive view of public sector efficiency.

The second pillar addresses sustainability. Efforts will be made to improve resource mobilization by broadening the tax base, enhancing tax compliance, and improving the recovery of outstanding revenues. In parallel, a more comprehensive approach to managing fiscal risks will be introduced, including the development of risk mapping systems and the integration of alternative macroeconomic scenarios into budget planning.

The third pillar centers on transparency. The strategy aims to improve the availability and quality of financial information, strengthen internal and external audit mechanisms, and expand public access to budget data. Digital tools will play a key role, with plans to develop integrated platforms that facilitate participation and data sharing among stakeholders.

Inclusiveness forms the fourth pillar, incorporating gender equality, climate considerations, and regional development into public finance decisions. This approach reflects Morocco’s broader objective of ensuring that public policies benefit all segments of society while supporting sustainable development.

The fifth pillar focuses on coordination and change management. It seeks to improve alignment between different reform initiatives, enhance institutional cooperation, and ensure effective implementation of policies across government entities.

Implementation through flexible planning

The execution of the strategy will rely on rolling three-year action plans, allowing authorities to adjust priorities and measures based on results and changing circumstances. The first phase is expected to begin in late 2026 and extend through mid-2029.

Each action plan will define specific measures, timelines, expected outcomes, responsible institutions, and financing needs. This structured approach is intended to enhance accountability and ensure that reforms deliver tangible results.

A coordinated governance mechanism will oversee implementation, supported by a rigorous monitoring and evaluation system. In addition, an early warning mechanism based on key performance and risk indicators will help detect potential issues and trigger timely adjustments.

Supporting national development objectives

Public financial management is considered a key lever for implementing major public policies and structural reforms. The new framework is expected to play a central role in advancing priorities such as employment, social protection, public service delivery, and regional equity.

It is also aligned with Morocco’s long-term ambition to build a more inclusive, competitive, and sustainable economy. By improving the efficiency and transparency of public spending, the strategy aims to create better conditions for economic growth and social development.

The timeline of the framework extends to 2032, with a planned mid-term review between 2029 and 2030 to assess progress and make necessary adjustments. This flexibility is intended to account for potential economic, technological, and geopolitical changes.

A step toward stronger financial governance

Through the adoption of this strategic framework, Morocco is reinforcing its commitment to modernizing public financial governance and improving the management of public resources. The initiative reflects a broader effort to enhance transparency, strengthen accountability, and ensure the sustainability of public finances.

As implementation begins, the success of the strategy will depend on effective coordination between institutions, sustained political commitment, and the ability to adapt to an evolving global environment. If successfully executed, the reform could further position Morocco as a regional example in public financial management and governance.