The Finance Bill (PLF) 2025 has arrived with high hopes but seems to have missed the mark for many stakeholders across Morocco. Intended to revitalize the economy, bolster job creation, and support various social projects, critics from opposition parties and the business community alike argue it’s failing to provide the necessary innovative measures to tackle rising unemployment and energize the country's entrepreneurial spirit.
Aziz Akhannouch, the head of the government, had outlined bold priorities for the bill last August—strengthening the social state, boosting investment and job creation, implementing structural reforms, and ensuring sustainable public finances. Yet, many believe these noble intentions barely scratch the surface.
One of the glaring omissions from the PLF 2025 is the absence of any substantial strategy aimed at addressing the persistent issue of unemployment, which surged to 13.1% during the second quarter of 2024. Abdellah Bouanou, head of the parliamentary group of the Justice and Development Party (PJD), expressed his dismay, stating, “The current social crises, including the recent events at Fnideq—a huge illegal immigration attempt to reach Sebta—reflect the depth of the jobs crisis. This should have been the top priority, but no efforts have been made.” Bouanou poignantly highlighted, “We were promised the creation of a million jobs at the start of the mandate, but all we’ve seen is destruction.”
Even with the Executive touting the allocation of 14 billion dirhams to promote employment, critics like Bouanou counter with the reality of no new initiatives to stimulate hiring. “The strategies implemented to date have shown their limits,” he lamented. “We hear about training bonuses, Intelaka and Taehil programs... These are just repeats of initiatives already out there, which have proven ineffective.”
The Progress and Socialism Party (PPS) echoed this sentiment, declaring the bill to be outdated. At their latest political bureau meeting, they expressed concerns it would fail to boost the national economy or create the necessary jobs. Abdeslam Seddiki, the former Minister of Employment and Social Affairs, stated frankly, “Let’s face it, such proposals are nothing new. They are already gathering dust in the Ministry’s drawers. Once again, the government has lacked imagination.”
Small and Medium-sized Enterprises (SMEs), cornerstones of the Moroccan economy, are feeling the sting of this inadequate legislation too. The Moroccan Confederation of Small and Medium-Sized Enterprises (TPME) is particularly vocal about the bill providing no actual solutions for SMEs or self-employed entrepreneurs. President Abdellah El Fergui criticized the Finance Bill for its best intentions on paper—a proposed investment budget of 340 billion dirhams—saying these figures outlined won’t ever reach small businesses because of the government’s failure to apply the public procurement code.
Since 2013, this code mandates 20% of public orders be awarded to SMEs, but the lack of implementing decrees means this has yet to materialize. El Fergui passionately urged for immediate changes, stating, “We need concrete, measurable financing and support programs for these companies—particularly tax incentives suited to their specific needs and improvements on late payments.”
Self-employed entrepreneurs also feel the pinch. Many had hoped for reforms targeting their taxing burdens, which have grown since the revised auto-entrepreneur scheme rolled out two years ago. Originally, this scheme offered two tax thresholds based on declared sales: 0.5% for those involved in industry, commerce, and crafts, and 1% for service providers. The tide turned this January, as annual sales over 80,000 dirhams made on behalf of the same customer were subjected to income tax at 30%.
Zakaria Fahim, president of the Bidaya Union of auto-entrepreneurs, highlighted the unintended consequences of these new regulations. He noted, “The authorities have thrown entrepreneurs under the bus instead of curbing fraud. The situation demands oversight on companies, not punishment of those simply trying to survive.” With the lower tax threshold initially appealing to businesses, many are feeling the strain as the conditions have changed.
On top of all these grievances, another structural reform seems to be gathering dust—the much-anticipated pension reform. This topic is urgent and necessary to maintain financial balance within various social protection schemes. “We’ve often reiterated the importance of activating this reform,” insisted Bouanou. “We need to show political courage and prioritize structural reforms before it’s too late.”
Reports from the Insurance and Social Security Control Authority (ACAPS) paint a troubling picture. Funding for Morocco’s principal pension schemes teeters on the brink of collapse, expected to be burdened by substantial debts and dwindling reserves within just a few years. Predictions for the CNSS pension scheme hint at its first overall deficit occurring as early as 2026, with reserves expected to run dry by 2038. Public sector schemes are also set to decline, as retirements increasingly outpace hiring in public service.
The only scheme staying afloat is the supplementary system, managed by the Moroccan Interprofessional Retirement Fund (CIMR), which anticipates maintaining reserves for at least the next 60 years. Discussions suggest harmonizing existing systems with two main schemes—public and private—while gradually raising the retirement age and adjusting contributions.
Yet, it’s these very adjustments which face intense opposition from unions, prolonging implementation even as the need for reform grows more apparent by the day. “The health of our pension system is not something we can afford to overlook,” cautioned Bouanou.
With the clock ticking and with growing frustration from various corners of the economy, Morocco’s Finance Bill (PLF) 2025 leaves many to question its effectiveness. Bilateral dialogue, concrete programs for employment, and necessary tax reforms for entrepreneurs scream for attention, showing just how much more work lies ahead if the government hopes to turn their plans for economic revitalization and social support from mere policy intentions to tangible results.
