Casablanca – Morocco has disbursed approximately $7.3 billion in direct social assistance since the launch of its national cash-transfer program in December 2023, extending financial support to more than 4 million households by the end of September 2026. The program has become a major component of the country’s social protection system, with payments covering millions of children, elderly people and low-income families, while the government prepares further increases in monthly benefits and a transfer of operational responsibilities to the National Agency for Social Support.

According to figures included in the report on public institutions and state-owned enterprises accompanying the 2027 Finance Bill, cumulative payments reached approximately $7.3 billion during the first 34 months of the program. The transfers benefited around 5.77 million children and 1.83 million elderly people, demonstrating the scale of the scheme and its focus on households facing economic and social vulnerability.

The geographical distribution of beneficiaries also highlights the program’s importance in rural communities. Approximately 62% of the individuals covered by the assistance system live in rural areas, where household incomes are often more dependent on agricultural activities, seasonal employment and informal economic activity. Access to stable social protection can therefore provide an additional source of income for families exposed to fluctuations in employment and living conditions.

The expansion of direct assistance comes as Morocco continues to restructure its social protection system, with an emphasis on replacing fragmented support mechanisms with more coordinated transfers targeted at eligible households. The program is designed to provide regular financial assistance according to household composition and social circumstances, including support for children, families with limited resources and elderly people.

A growing commitment in the public budget

The financial scale of the program is expected to remain substantial over the coming years. Government projections estimate annual expenditure of approximately $3 billion for the 2027–2029 period. The authorities anticipate that the number of beneficiaries will remain relatively stable during these years, suggesting that future budgetary requirements will increasingly depend on the level of assistance provided to existing recipients and the evolution of eligibility criteria.

This projected spending represents a continuing commitment to social transfers at a time when the government must also finance infrastructure, education, healthcare, employment initiatives and other public services. Maintaining the program will consequently require sustained budgetary resources and effective administrative mechanisms to ensure that payments reach eligible households.

The distinction between the cumulative amount already disbursed and future annual expenditure is important. The $7.3 billion represents payments made since December 2023 through September 2026, while the projected $3 billion in annual spending corresponds to the expected financial requirements for each year between 2027 and 2029.

The government’s approach also reflects a shift from the initial establishment of the system toward improving its long-term operational capacity. After extending coverage to millions of households, the next phase will involve adjusting benefit levels, strengthening administrative controls and improving the management of beneficiary information.

Gradual increase in monthly benefits

One of the main changes planned for 2027 concerns the gradual increase in the minimum monthly assistance. The government intends to raise the minimum payment from approximately $51 to $62 during the first phase of implementation. The longer-term objective is to bring the minimum monthly amount to approximately $103.

The planned adjustment is part of the government’s commitment to improve the financial support available to vulnerable households. However, its implementation will take place progressively, allowing the authorities to adjust budgetary allocations and administrative arrangements as the program develops.

The increase also comes against a background of changing household expenditure requirements. Families must allocate a significant share of their income to food, housing, transport, education and healthcare. For households with limited or irregular earnings, predictable monthly transfers can help cover some of these expenses and reduce their exposure to temporary income shortages.

The assistance provided to families with children is particularly relevant given the costs associated with schooling, nutrition and basic healthcare. Similarly, support for elderly people can contribute to household resources in situations where retirement income or other sources of financial support are limited.

Nevertheless, the impact of the planned increase will depend on the purchasing power of the additional payments, the number of household members covered and the extent to which beneficiaries have access to other social protection services.

A new phase for the National Agency for Social Support

Institutional restructuring is another important component of the government’s plans. The National Agency for Social Support is expected to assume full responsibility for managing the direct assistance system and its associated information infrastructure from December 2026.

The transfer will involve administrative functions and digital systems currently handled by the National Social Security Fund and the National Pension Fund. Bringing these responsibilities under the agency’s direct supervision is intended to establish a more centralized management structure and strengthen its ability to monitor payments, manage beneficiary information and coordinate the different stages of the assistance process.

This institutional arrangement is particularly important given the size of the beneficiary population. Managing assistance for more than 4 million households requires reliable databases, effective eligibility verification procedures and mechanisms to address changes in family circumstances. The system must also be capable of processing applications, updating beneficiary records and resolving payment-related complaints.

For 2027 and 2028, the agency intends to concentrate on upgrading its information system, expanding its operational capabilities and strengthening digital security. These improvements are expected to support the growing administrative responsibilities resulting from the transfer of management functions.

The protection of personal information is another important consideration. The system handles sensitive household and financial data, making secure information management essential to maintaining the reliability of the program. Greater institutional control over its digital infrastructure could also facilitate coordination between the agency and other public administrations involved in social protection.

Additional assistance for vulnerable children

The government is also preparing a specific allowance for orphaned and abandoned children living in residential social care institutions. This measure would extend the program’s scope to children whose circumstances require dedicated institutional support.

The planned allowance forms part of a broader effort to address different forms of social vulnerability rather than relying exclusively on household-based assistance. Children living in care institutions may face specific needs relating to education, healthcare, accommodation and daily living expenses.

Its implementation will require coordination between the National Agency for Social Support and the organizations responsible for managing residential care facilities. The authorities will also need to establish the administrative arrangements governing eligibility, payment procedures and the monitoring of assistance.

This measure could provide an additional financial mechanism for supporting children who are not necessarily covered through conventional household payment arrangements.

Expanding access through local representation

Alongside the digital and institutional changes, the agency is developing a territorial network intended to bring administrative services closer to beneficiaries.

The first pilot local representation office opened in the province of El Jadida in February 2026. The initiative is designed to facilitate access to information, assist citizens with their applications and allow complaints to be processed locally.

The development of local offices addresses an important practical aspect of social assistance. Although digital platforms can simplify registration and administrative procedures, some households may encounter difficulties using online services or understanding eligibility requirements. This can be particularly relevant in rural communities, where access to digital infrastructure and administrative services may be more limited.

Local representation could therefore complement the national information system by providing direct assistance to beneficiaries and helping resolve problems that cannot easily be addressed through remote procedures. The El Jadida pilot is expected to serve as a model for a gradual expansion to other regions.

The geographical dimension is particularly significant given that rural residents account for 62% of beneficiaries. Extending the agency’s presence beyond major urban centres could help reduce administrative barriers and improve the accessibility of social protection services.

Social protection and Morocco’s broader economic priorities

The expansion of direct social assistance is taking place alongside other reforms affecting healthcare coverage, family support and access to public services. These initiatives form part of Morocco’s broader effort to reorganize its social protection framework and extend coverage to populations that have historically faced limited access to formal assistance mechanisms.

The program also has an economic dimension. Regular transfers provide additional resources to households with relatively limited purchasing power. A portion of this assistance is likely to be spent on essential goods and services, including food, clothing, transport and basic household requirements. This can support domestic consumption, particularly in communities where household spending represents an important source of economic activity.

However, cash transfers alone cannot resolve the structural factors behind household vulnerability. Employment opportunities, wage levels, educational outcomes, healthcare accessibility and regional economic disparities remain important determinants of living standards. The effectiveness of social assistance will therefore depend partly on its coordination with policies addressing these wider challenges.

The government’s projected annual expenditure of approximately $3 billion between 2027 and 2029 indicates that direct assistance is expected to remain a significant and recurring component of public spending. At the same time, the planned increase in minimum benefits, the transfer of management responsibilities and the introduction of additional allowances will require continued improvements in administrative performance.

As Morocco moves into the next phase of the program, attention is likely to shift from expanding the number of beneficiaries toward improving the quality, reliability and financial adequacy of the assistance provided. The combination of higher monthly payments, stronger digital management and wider territorial coverage will shape the system’s development over the coming years.