Morocco expects to further cut its fiscal deficit from 4% in 2024 to 3.5% in 2025 and 3% in 2026, despite an increase in spending on social protection, Fouzi Lekjaa said. Increased spending on social protection would be funded by an increase in government’s revenue, he said. In three years, the government, mainly through taxes, mobilized an additional 100 billion dirhams, he said, citing reforms of the corporate and value added taxes. The government spent 9 billion dirhams to help the electricity operator keep prices stable, he said. These reforms meant that Morocco would not resort to foreign debt to fund its social protection plan and that debt would decrease to less than 70% in 2026 from 72.2% in 2021, Lekjaa said.
