Morocco's House of Representatives adopted the first part of the 2027 Finance Bill (No. 60.26) on Saturday 14 November, with 179 votes in favour and 126 against, and no abstentions, Morocco World News reports. The vote came after the government's reply to the parliamentary groups.
The Finance and Economic Development Committee had approved the same section on Thursday, by 23 votes to 17. The bill was referred to Parliament on 20 October and presented to the committee three days later.
The government's assumptions
The 2027 budget is built on a growth forecast of 3.7%, a budget deficit of 3% of GDP and inflation of 1.5%. It also assumes a cereal harvest of 70 million quintals, an average butane price of 600 dollars per tonne and 2.6% growth in foreign demand for Moroccan goods, excluding phosphates and derivatives.
Economy and Finance Minister Fouzi Lekjaa said the budget seeks to correct long-standing imbalances between economic growth and social development. According to him, the government plans to devote more than 350 billion dirhams over its five-year term to purchasing power, living conditions and social services.
The purchasing-power measures
The committee report, presented on Friday, lists the measures that drew the most comment:
- Income tax: the exempt portion of the first bracket rises from 40,000 to 60,000 dirhams, the number of taxable brackets falls from five to three, with rates of 10%, 20% and 30%;
- Pensions: the minimum pension rises progressively to 1,700 dirhams from 2027, then to 3,000 dirhams a month by 2031, and survivors' pensions for widows go from 50% to 100%;
- Electricity: the State pays household bills up to 100 dirhams a month;
- Direct social aid: the monthly amount goes from 500 to 600 dirhams in 2027, then to 1,000 dirhams by 2031;
- Food prices: six regional companies or professional platforms to collect and market produce in the main farming areas, and the modernisation of 12 wholesale fruit and vegetable markets. Lekjaa said 1 billion dirhams would go to reforming distribution networks, to reduce intermediaries and improve price transparency.
Praise, and questions about financing
Many MPs welcomed these measures. But the question of how they will be financed was a major concern. Some deputies called for clarity on funding sources and on the government's real room for manoeuvre. Others said the income tax reform remains "inequitable for some categories", and asked whether retired public-sector workers would benefit from the pension increases. The minister acknowledged the limits of the targeting index used for social aid and said the government intends to revise it.
Amendments: the majority dominates
According to the committee report, 59 amendments were accepted, 116 rejected and 112 withdrawn. The government obtained approval for all 11 of its amendments, and the majority groups for 33 of their 42. The opposition fared less well: the PJD saw 4 of its 82 amendments accepted, the Left Alliance 1 of 67, the Popular Movement 11 of 65 and the RNI 2 of 23. The committee spent 55 hours and 25 minutes over 11 meetings.
On the floor, the government rejected opposition proposals to remove or limit the permanent exemption from import duties on livestock and meat, arguing that falling herds, shortages and high prices make it hard to restore them. It also rejected the extension of the 40% corporate tax rate to telecom and cement companies.
What comes next
The House now moves to the second part of the bill. Standing committees vote on the sectoral budgets, then plenary sessions hold a general debate on that part, followed by a vote on it and on the 2027 Finance Bill as a whole. The text then continues its path through Parliament.
Main image: the Moroccan Parliament building in Rabat (file photo) — Fernando Pascullo, Wikimedia Commons, CC BY-SA 4.0.
Sources
- Morocco World News — Morocco's Parliament Approves First Part of 2027 Finance Bill With 179 Votes
- Hespress FR — PLF 2027 : des députés saluent les mesures en faveur du pouvoir d'achat, d'autres appellent à davantage de visibilité sur leur financement
- Hespress EN — 2027 Finance Bill: Opposition secures just 16 of 214 proposed amendments
- Hespress EN — Plenary Sessions on Friday, Saturday to Examine & Vote on 2027 Finance Bill
