Morocco raises defense procurement ceiling 21% to MAD 190.5 billion in 2027 budget

Morocco’s draft 2027 Finance Bill proposes raising the ceiling for future military equipment and defense industry commitments by 21.2% to MAD 190.5 billion, compared with MAD 157.17 billion in 2026, as the government seeks parliamentary authorization for spending commitments extending into the following financial year.

The increase of MAD 33.33 billion is the largest among the advance commitment provisions listed in Finance Bill 60.26, which also sets ceilings for territorial development, roads, prison administration, digital modernization and other public funds.

Under Article 36, the minister responsible for National Defense would be authorized to enter into commitments during 2027 against appropriations to be allocated in 2028, through the dedicated account for acquiring and repairing Royal Armed Forces equipment and supporting the development of Morocco’s defense industry.

The proposed ceiling has risen from MAD 124.77 billion in 2024 and MAD 133.45 billion in 2025 to MAD 157.17 billion in 2026, bringing the cumulative increase over three years to nearly 53%.

Territorial development receives second-largest ceiling

The Integrated Territorial Development Fund would receive an advance commitment ceiling of MAD 15 billion, the second-largest amount among the provisions.

Other authorizations include MAD 3 billion for the Special Roads Fund, MAD 2 billion for prison administration support and MAD 1.5 billion for public administration modernization and digital transition.

The National Initiative for Human Development and National Sports Development Fund would each receive MAD 1 billion in advance commitment authority, while the Central Pharmacy Special Account would receive MAD 800 million.

These figures represent limits on commitments the government can undertake in 2027 against future appropriations. They are not allocations for expenditure during 2027 and should not be interpreted as the total annual budgets of the institutions concerned.

The defense equipment account, for example, is separately allocated MAD 11.49 billion in expenditure for 2027.

Wider funding for regional and social programs

Beyond the advance commitment ceilings, the draft doubles annual expenditure through the Integrated Territorial Development Fund to MAD 10 billion, compared with MAD 5 billion in 2026.

It also increases the Social Protection and Social Cohesion Support Fund’s allocation from MAD 36.49 billion to MAD 40.16 billion, while local authorities’ share of VAT revenue rises from MAD 57.60 billion to MAD 64.71 billion.

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