The Moroccan government has addressed growing concerns about how it plans to fund its new system of direct social assistance, a core component of the country’s push to expand social protection under the leadership of King Mohammed VI. In a detailed written response to the Popular Movement’s parliamentary group, Minister Delegate for the Budget Fouzi Lekjaâ outlined the financial structure designed to sustain this ambitious program over the long term.
Launched in December 2023, the direct support system targets nearly 60% of the population that previously lacked coverage. It provides monthly financial aid to low-income families, individuals with disabilities, households without school-age children, and families with newborns. The amount of assistance varies depending on household composition, ranging from 500 to 1,500 dirhams per month. To support this initiative, the government has already committed 49 billion dirhams.
At the center of this effort is the creation of a unified fund—the Social Protection and Solidarity Fund—which consolidates financial resources previously spread across several separate programs, including Tayssir, RAMED, the widow assistance program, and the family solidarity fund. By streamlining these efforts into one mechanism, the government aims to enhance both the efficiency and impact of its social policies.
But beyond merging programs, the real strength of the funding model lies in its diversity. The fund is supported by a mix of stable, long-term revenue sources. These include specific taxes such as the domestic consumption tax on products like tobacco and energy-intensive appliances, a solidarity levy on corporate profits, a tax on insurance contracts, and a new tax on gambling introduced in 2025. There’s also revenue from a one-time levy on foreign-held assets that was implemented the year before.
This broad base of funding sources is meant to reduce the program’s dependence on traditional state budget allocations. According to Lekjaâ, this approach is supported by a positive fiscal trend: in 2024, Morocco’s ordinary revenue rose to 313 billion dirhams—a nearly 14% increase from the previous year. That momentum was mirrored in the Social Protection Fund, which saw its own revenues climb from 15.2 billion to 24.7 billion dirhams over the same period.
The government’s gradual reform of the subsidy system is also playing a critical role. As subsidies are phased out, the savings are being redirected to support both the direct aid program and the AMO-Tadamon health coverage scheme, which aims to expand access to medical care.
In his remarks, Lekjaâ stressed that the government’s approach is built on sound financial planning. It combines targeted tax revenues, strategic spending cuts, and tight management to ensure the program’s sustainability. At its heart, the initiative is about building a lasting safety net—one capable of supporting Morocco’s shift toward a more inclusive and resilient development model.
