2027 budget promises jobs and economic sovereignty, but public hiring is set to fall

Morocco plans to spend more on its priorities in 2027, with a stronger focus on jobs, young people and economic independence. But the proposed budget also includes fewer public-sector jobs, while spending on public investment is set to increase only slightly. An analysis by the African Center for Strategic Studies and Digitalization (CAESD) found that the government expects higher tax revenues to improve the state’s finances. It also plans to cut income taxes for many workers and give greater attention to employment, social protection and the country’s control over key resources. The draft Finance Bill, the first budget under the government’s 2026-2031 program, sets out five main priorities, compared with four in 2026. It puts purchasing power and social protection first and adds youth integration and economic sovereignty to its agenda.

More revenue, fewer public-sector jobs

The proposed budget estimates ordinary state revenues at MAD 482.4 billion, up 14.5% from MAD 421.3 billion in 2026. Most of that increase is expected to come from taxes, which are projected to bring in MAD 437.4 billion, up 16.3%. Ordinary spending is also expected to rise, reaching MAD 433.1 billion, a 10.6% increase. The government expects the state budget deficit to fall from MAD 107.6 billion in 2026 to MAD 89.6 billion in 2027, mainly because it expects to collect more revenue. But the budget plans fewer new public-sector positions. The number of budgeted jobs is set to fall by 6.6%, from 36,895 in 2026 to 34,454 in 2027. Including positions in regional education academies and territorial health groups, the total drops from 55,895 to 52,644, a decline of 5.8%. The biggest cut is expected in education recruitment through regional academies, which is set to fall from 19,000 positions to 15,590, down 17.9%. The Interior Ministry is among the few departments set to recruit more staff, with 14,200 positions planned for 2027, compared with 13,000 in 2026. The health sector will keep a combined total of 8,000 positions: 5,400 for the ministry and 2,600 for territorial health groups. The report also points out that the proposed budget does not give a specific number of jobs for the government’s national youth program. This comes as the government makes youth employment one of its main priorities.

Lower income taxes, greater focus on economic independence

The budget includes tax cuts that are expected to reduce the amount many workers pay. From 2027, people earning up to MAD 60,000 a year will be exempt from income tax, compared with the current threshold of MAD 40,000. Tax rates on three income brackets will also fall by 10 percentage points. The CAESD estimates that the maximum annual tax saving under the new rates will reach MAD 6,000. Workers will also benefit from a higher deduction for work-related expenses. For example, a worker earning MAD 120,000 a year before tax could see their annual income tax bill fall from MAD 7,200 to MAD 1,900, saving MAD 5,300, according to the report’s calculations. The report also found a clear change in the language used in the government’s budget documents. It compared the documents for 2025, 2026 and 2027 and found that references to economic sovereignty, jobs and youth have become more frequent. The word “sovereignty” appears 5.8 times per 10,000 words in the 2027 document, compared with 0.7 in 2026. The term covers the government’s plans to strengthen Morocco’s control over areas such as water, energy, food production and digital technology. References to employment, young people and training also nearly doubled, rising from 32.2 to 64.7 occurrences per 10,000 words. However, the report warns that giving an issue more attention in a government document does not necessarily mean more money will be spent on it. Public investment allocations, for example, are set to rise by only 1.4%, from MAD 136.1 billion to MAD 138 billion.

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