Casablanca – Morocco is preparing its 2027 Finance Bill around a combination of infrastructure investment, regional development, social programs and tighter control of public spending, as the government seeks to maintain economic growth while addressing differences in development between regions.

The guidance memorandum issued by Head of Government Aziz Akhannouch sets out four broad priorities for the 2027 budget: consolidating economic gains, upgrading Morocco’s regions and reducing social and territorial disparities, strengthening the social state, and continuing structural reforms while preserving the stability of public finances.

The budget preparation comes as Morocco enters a period of large infrastructure investment linked to its longer-term development plans and preparations for major international events, including the 2030 FIFA World Cup, which Morocco will co-host with Spain and Portugal.

Transport infrastructure is expected to remain one of the largest areas of public investment. The government plans to continue extending Morocco’s high-speed railway network, including the 430-kilometer Kenitra-Marrakesh corridor, while preparing for further expansion toward Agadir. Regional express rail services are also planned for the Casablanca-Settat, Rabat-Sale-Kenitra and Marrakesh-Safi regions.

The railway program is intended to improve connections between major urban and economic centers while supporting industrial, tourism and construction activity. The government also plans to connect Casablanca’s Mohammed V Airport to the high-speed railway network through a new railway station that would serve as an interchange between high-speed rail, regional trains and road transport.

Air transport is another major part of the infrastructure agenda. Under the Airports 2030 strategy, Morocco aims to increase its annual airport capacity to 80 million passengers by 2030. Expansion and modernization projects are expected to continue at major airports including Casablanca, Marrakesh, Fez, Agadir and Tangier.

Royal Air Maroc is also implementing a long-term expansion plan that targets a fleet of 200 aircraft by 2037 and more than 100 additional international destinations. The objective is to expand Morocco’s air links with Europe, Africa, the Middle East, Asia and the Americas as passenger demand increases.

Ports and logistics are similarly being developed as part of Morocco’s strategy to strengthen its position in international trade. Nador West Med remains one of the main projects, with the government planning to accelerate its road and railway connections and integrate the port into national and international transport networks.

Construction of the Dakhla Atlantic Port is also continuing. The project is expected to support economic activity in Morocco’s southern regions and strengthen commercial and logistics links with African markets.

Water security has emerged as another central priority in the 2027 budget framework. The government plans to accelerate the national desalination program, with a target of producing about 1.7 billion cubic meters of desalinated water annually by 2030.

Major desalination projects in Casablanca, Dakhla and Safi are among the facilities being developed or brought into operation. The government also intends to continue constructing large and medium-sized dams and developing inter-basin water transfer projects to improve the distribution of water resources.

The water program reflects the pressure created by recurring drought and declining water availability. By expanding desalination and improving infrastructure for transferring and storing water, authorities are seeking to reduce the dependence of major cities and economic sectors on rainfall.

Regional development is another major element of the proposed budget. The government plans to introduce a new generation of integrated regional development programs, with an estimated overall allocation of around $21.65 billion over eight years.

Annual financial transfers to Morocco’s regions are also expected to increase to at least approximately $1.24 billion from 2027. The additional resources are intended to allow regional authorities to finance infrastructure and development projects while improving access to basic services.

The government’s approach focuses particularly on reducing disparities in healthcare, education, drinking water, transport and employment between urban centers and rural, mountainous and less-developed areas.

Social policy will also account for substantial public spending. The government plans to continue expanding social protection and direct social assistance while upgrading public healthcare facilities and developing new university hospitals.

Education reform is another priority. The government plans to expand the Pioneer Schools model to 6,562 primary schools, equivalent to around 80% of public primary schools, as well as 1,363 lower-secondary schools by the 2027-2028 academic year.

Measures resulting from social dialogue are expected to cost the public sector around $5.12 billion annually in 2027. The government also plans to allocate approximately $1.36 billion to support the prices of butane gas, sugar and flour.

The direct housing assistance program is another component of the social agenda. By July 3, 2026, more than 111,000 households had benefited from the program, with funding exceeding approximately $938 million.

At the same time, the government is signaling that increased spending will be accompanied by stricter financial controls. Ministries have been instructed to limit requests for new positions to essential needs and to reduce operating expenses, including spending on water, electricity, vehicle rentals, official receptions and conferences.

The guidance also calls for limiting the purchase of government vehicles and the construction or renovation of administrative buildings. Financial support for public institutions is expected to be increasingly linked to their performance and the progress of their investment programs.

The government is also seeking to strengthen state revenues and maintain control over debt. It forecasts economic growth of 5.3% in 2026 and aims to reduce the budget deficit to around 3% of GDP. Public debt is expected to remain around 65% of GDP, with a target of reducing it to 63% by the end of 2029.

The economic strategy also places greater emphasis on private investment. Government figures point to Morocco’s growing industrial base, including its position as Africa’s leading vehicle exporter, as well as continued expansion in tourism and other export-oriented sectors.

The 2027 budget framework targets the upgrading of 400 new exporting companies, with the government expecting this effort to generate an additional approximately $8.66 billion in export value and create more than 76,000 direct jobs by 2027.

The government’s broader digital agenda will continue through implementation of the Digital Morocco 2030 strategy. Investments are expected to support digital infrastructure, cloud computing, cybersecurity and the digitization of public administration. Small and medium-sized enterprises and startups are also expected to receive support for adopting digital technologies and developing new products and services.

The preparation of the 2027 Finance Bill therefore combines several objectives that will require careful management of public resources. Morocco is seeking to maintain investment in large infrastructure projects while increasing social spending and directing more resources toward regions that have benefited less from economic activity.

At the same time, the government is emphasizing expenditure controls, stronger state revenues and debt management. The central challenge for the 2027 budget will be maintaining the pace of investment and social programs without putting excessive pressure on public finances.

With the 2030 World Cup approaching and major transport, water, port and digital projects continuing, the coming budget year is expected to play an important role in determining how quickly these investments translate into improved connectivity, stronger regional economies and expanded public services across Morocco.