Casablanca – Morocco’s public finances are undergoing a marked transformation, driven by a sustained rise in tax revenues that is reshaping the government’s ability to finance social programs, public investment, and structural reforms. According to official government statements, tax revenues are expected to reach approximately $37.73 billion by 2026, compared with $20.52 billion in 2020, reflecting a significant expansion in the state’s fiscal base over a six-year period.

This projected increase of nearly $16.50 billion in tax revenues represents one of the most notable developments in Morocco’s recent fiscal trajectory. Government officials describe this evolution as a key factor behind the launch and scaling-up of major policy initiatives, particularly in the areas of social protection, purchasing power support, and public investment.

Expanding fiscal space for social reforms

The rise in tax revenues has enabled the government to mobilize substantial financial resources for the generalization of social protection, a cornerstone reform aimed at extending coverage to broader segments of the population. In 2026 alone, allocations for this program are expected to reach $4.28 billion, underscoring its central role in the country’s social policy framework.

Alongside this reform, the government has committed approximately $2.99 billion to direct social assistance mechanisms designed to support vulnerable households. These programs form part of a broader effort to reinforce social cohesion and mitigate the effects of economic shocks on lower-income groups.

Additional funding has been directed toward the sustainability of the national health insurance system, with $0.98 billion allocated to cover contributions linked to the “AMO Tadamoun” scheme. This component is intended to ensure continuity of healthcare coverage while supporting the financial equilibrium of the system.

Social dialogue and housing support

The strengthening of public finances has also allowed the government to honor commitments arising from social dialogue with labor unions and professional organizations. By 2026, the cumulative cost of these commitments is expected to exceed $4.85 billion, reflecting wage adjustments, sectoral agreements, and other negotiated measures.

In parallel, housing policy has benefited from increased fiscal room, with $1.03 billion mobilized to support access to housing. This program aims to stimulate residential construction while improving affordability for households, particularly first-time buyers and middle-income groups.

Public investment on an upward path

Beyond social spending, rising tax revenues have played a decisive role in boosting public investment. Between 2021 and 2026, annual public investment is set to rise from $23.71 billion to $39.18 billion, highlighting the government’s strategy of using investment as a lever for growth, employment, and infrastructure development.

These investments span multiple sectors, including transport, energy, water infrastructure, and industrial zones, with the objective of enhancing the country’s long-term productive capacity and regional competitiveness.

Supporting purchasing power

Between 2022 and 2025, the government allocated approximately $11.03 billion to measures aimed at protecting household purchasing power. These interventions included subsidies for essential consumer goods such as butane gas, sugar, and flour, as well as financial support for key public institutions, notably the national electricity and drinking water utility.

Such measures were implemented in a context of global inflationary pressures, rising energy prices, and supply chain disruptions, which weighed on household budgets. Authorities view these interventions as temporary but necessary tools to preserve social stability.

Increased budgets for health and education

The expansion of fiscal resources has also translated into higher allocations for core social sectors. Combined spending on health and education is expected to reach $14.43 billion in 2026, reflecting a strategic emphasis on human capital development.

In the health sector, additional resources are intended to improve infrastructure, staffing, and service quality, while in education, funding is directed toward system reform, teacher recruitment, and reducing territorial disparities in access to schooling.

Toward greater tax equity

Government officials argue that the improvement in tax revenues is not solely the result of economic growth, but also of reforms inspired by the recommendations of the National Tax Conferences. These reforms aim to broaden the tax base, improve compliance, and enhance fairness within the tax system.

According to official assessments, the combination of higher revenues and more efficient allocation has given the state greater financial flexibility to implement large-scale projects while progressing toward greater tax equity.

As Morocco approaches 2026, the steady rise in tax revenues is emerging as a central pillar of its economic and social strategy. While challenges remain—particularly in ensuring the sustainability and efficiency of public spending—the current fiscal trajectory provides the government with expanded tools to pursue long-term development objectives in a constrained global environment.