Morocco’s Minister of Economy and Finance, Nadia Fettah Alaoui, presented a broad summary of the 2024 Appropriation Bill to King Mohammed VI, on Thursday, at a meeting with the council of ministers in Rabat Palace. This marked the start of an important period of economic policy formulation, announced the spokesperson of the Palace, Abdelhak El Mrini.
The Minister underlined the challenging global economic scenario in which Morocco and the rest of the world finds itself, with a corresponding slowdown in economic activity, spiraling inflation, and rising geopolitical tensions. Moreover, the recent earthquake that struck the country in September added an extra layer of complexity to the economic outlook.
The aforementioned bill aims to enhance ongoing changes, to highlight major projects to be addressed in official Royal Speeches, and to focus on the government’s strategy through four key elements.
First, there is a strong commitment to rebuilding and upgrading the infrastructure of regions affected by the recent earthquake in Al Haouz. Under Royal directives, a coordinated approach will be adopted, involving various stakeholders. This includes the establishment of the High Atlas Development Agency, which will pool resources from the State General Budget, local authorities, the Special Solidarity Fund for earthquake impact management, and the Hassan II Fund for economic and social development. International cooperation and assistance will also play a vital role in this endeavor.
The government is placing a high priority on effective water resource management and support for agriculture. This will not only help mitigate inflation but also enhance the purchasing power of citizens.
Second, the government is committed to advancing social welfare through an extensive program. This includes extending Basic Mandatory Health Insurance to vulnerable segments of society and gradually introducing direct social assistance. The aim is to provide coverage for a significant portion (60%) of Moroccan families that are not currently protected by social security, with direct aid of at least 500 dirhams to each household.
This safety net will be facilitated by the completion of the legal framework for the rehabilitation of the national health system and of education and training reform as a pillar of the Social State.
Top priority will be devoted to the implementation of the new housing program aiming at providing financial incentives to housing purchases in accordance with the Royal orders.
Third, the 2024 Budget Plan underscores the importance of continuing structural reforms. This includes a comprehensive reform of the justice system to provide legal security, and to underpin overall development as well as the implementation of the High Royal Instructions relating to the revision of Family Law statutes.
The Mohammed VI Investment Fund and the new Investment Charter are promoting productive investment in sectors such as agriculture and tourism, enhancing administrative efficiency, and encouraging regional decentralization through initiatives.
Finally, in terms of financial sustainability, the government will be actively involved in reforming the Organic Law on Finance, exploring innovative funding mechanisms, optimizing the public portfolio, and efficiently managing operating expenses.
The 2024 Budget Plan signifies a bold step towards addressing the economic challenges facing Morocco, the objectives of which include sustained growth and social welfare in a complex global landscape.
As stated by the Minister, the Appropriation Bill is predicated on 3.7% growth rates in 2024 and a budget deficit of 4% of the GDP.