RABAT, Oct 20 (Reuters) – Morocco’s finance ministry has presented a draft budget for 2026 amounting to 761.3 billion dirhams ($83 billion), representing a 5.5% increase compared to the previous year. The proposal was submitted to parliament on Monday. n nAccording to documents reviewed by Reuters, the government anticipates economic expansion to ease slightly, reaching 4.6% in 2026, down from an estimated 4.8% in 2025. This moderation is attributed to uncertainties in global markets and expectations of an average cereal harvest in the North African nation. n nThe administration emphasized that its fiscal priorities for the upcoming year will center on strengthening public health and education systems, as well as addressing regional disparities in development. n nRecent weeks have seen youth-led demonstrations spread across various regions, highlighting widespread dissatisfaction with the quality of public services. n nPublic investment is projected to rise by 12% to 380 billion dirhams next year, primarily directed toward infrastructure such as ports, airports, and rail networks in preparation for Morocco’s role in hosting the 2030 FIFA World Cup. n nThe budget forecasts a reduction in the fiscal shortfall, projecting it to decline to 3% of GDP in 2026 from 3.5% in the current year. This improvement is expected due to growing tax receipts counterbalancing higher public spending. n nTotal financing requirements for 2026 are estimated at 48.744 billion dirhams, a 23.26% decrease from 2025 levels. n nReporting by Ahmed El Jechtimi; editing by Mark Heinrich and Paul Simao
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Morocco targets 5.5% rise in 2026 budget, expects economic growth to slow modestly
RABAT, Oct 20 (Reuters) – Morocco’s finance ministry on Monday submitted to the country’s parliament a 2026 draft budget totalling 761.3 billion dirhams ($83 billion), up 5.5% from a year ago. n nThe government expects economic growth to slow to 4.6% next year from 4.8% in 2025, due in part to global market uncertainties and an anticipated average grain harvest in the North African country, according to the draft budget seen by Reuters. n nSign up here. n nThe government said it would place priority on improving health and education and reducing inequalities between regions in its 2026 budget. n nYouth-led protests spread across the kingdom in recent weeks, revealing deep-seated anger over public services. n nMorocco’s government expects public investment to increase by 12% to 380 billion dirhams next year, driven by spending on infrastructure projects, including ports, airports and railways ahead of the 2030 FIFA World Cup, the document showed. n nThe country’s fiscal deficit is expected to shrink to 3% of GDP in 2026 from 3.5% this year, as higher tax revenue continues to offset increased public investment spending, the document showed. n nFinancing needs are estimated at 48.744 billion dirhams in 2026, down 23.26% from 2025. n nReporting by Ahmed El Jechtimi; editing by Mark Heinrich and Paul Simao