The Minister of Economy and Finance, Nadia Fettah Alaoui, revealed that the government will continue in 2025 measures aimed at supporting the purchasing power of citizens. This includes subsidizing basic necessities, such as butane gas, refined sugar and soft wheat flour, she said, specifying that to do this, more than 16.5 billion dirhams will be allocated to the Compensation fund as part of the 2025 budget.
Presenting the finance bill (PLF) for the year 2025, during a plenary session of the two Houses of Parliament this Saturday, Nadia Fettah indicated that“in application of royal directives, the government, through this bill, undertakes to honor its commitments within the framework of social dialogue, with a budgetary envelope of 20 billion dirhams in 2025 and a total of nearly 45 billion of dirhams by 2026”.
The minister also noted the continuation of reforms linked to income tax, including the revision of progressive rates, with an increase in the exemption threshold from 30 to 40,000 dh/year. This measure will exempt salaries below 6,000 dh/month from tax, while expanding and reducing other tax brackets. This could result, she noted, in a 50% drop in applicable rates.
She also announced a reduction of one percentage point in the marginal rate of income tax (IR), which will go from 38 to 37%. Furthermore, to stabilize prices on the national market, certain imports will benefit from VAT exemptions, particularly for live animals and certain agricultural products. Customs duties on the importation of live animals and red meat will also be suspended from January to December 2025, as will those applied to the importation of brown rice and virgin olive oil.
Concerning housing, the minister stressed that more than 25,000 families have benefited from the direct assistance program for the purchase of their main residence since October. This program will continue in 2025, as will the initiatives aimed at eradicating unsanitary housing and improving the living conditions of households, said Nadia Fettah.
She further recalled the numerous internal crises that the country had to face, including the water crisis, the Al Haouz earthquake and floods in the southeastern provinces.
The PLF 2025 is part of a still uncertain international context, marked by repeated climate crises and an escalation of geopolitical tensions. The minister specified in this sense that global growth should not exceed 3.2% for the years 2024 and 2025, while in the euro zone, it will experience a slight improvement, going from 0.9% in 2024 to 1, 3% in 2025.
At the national level, she said, the project was developed in a context of falling inflation, reduced to 11% in August 2024, thanks to the government’s efforts to support prices and agricultural inputs. The Moroccan economy is expected to grow by 3.3% in 2024, supported by dynamic growth in the non-agricultural sector, with added value increasing by 3.7%, compared to 3.5% in 2023.
These prospects are confirmed by the positive development of the exporting sectors, with an increase of 7.6% in exports from the automotive sector and 11.7% for phosphate and its derivatives until August 2024, compared to the same period in 2023. The sale of cement also saw an increase of 7.2%, while the tourism sector recorded record figures, with 11.8 million visitors.
In her speech, the minister outlined the four major challenges of the PLF 2025, namely strengthening the foundations of the social state, consolidating the dynamics of investment and job creation, pursuing structural reforms and guaranteeing the sustainability of public finances.
The first challenge is to strengthen the social state, with the effective generalization of social protection. This includes compulsory health insurance for all social and professional categories, supported by an annual budget of around 10 billion dirhams. The government will also increase family allowances, with 250 dh for each child in the top three in school, or 350 dh for children with disabilities. Children not in school will benefit from 175 dh.
For orphans, support will reach 375 dh per child among the first three, with a minimum of 500 dh per family. This program will mobilize MAD 26.5 billion in 2025, while reforms linked to retirement and compensation for loss of employment will also be extended.
As for health, the minister explained that the government is determined to continue reforming the national system to guarantee access to care for all citizens, through the improvement of hospital infrastructure and the construction of new university centers. in Agadir, Laâyoune, Errachidia, Béni Mellal and Guelmim, while modernizing existing centers.
Related News :