Morocco’s 2027 Finance Bill is entering its final week before the statutory deadline for submission to the House of Representatives, as negotiations to form a new government accelerate ahead of the formal appointment of a cabinet led by Fatima Zahra Mansouri.
The four-party governing alliance announced by the Authenticity and Modernity Party (PAM), the Istiqlal Party, the Socialist Union of Popular Forces (USFP) and the Party of Progress and Socialism (PPS) now faces a tight timetable to reconcile its political priorities with the budgetary framework prepared by the outgoing government.
A deadline under pressure
In a statement issued on Monday, October 12, the four majority parties said they would propose ministerial candidates based on their competence, political acumen, integrity and probity. The stated objective is to form a “cohesive and strong” government capable of implementing a program to be prepared as soon as possible.
But the constitutional timetable leaves little room for delay. The deadline for submitting the 2027 Finance Bill is Tuesday, October 20, just one week after the parties’ announcement.
Article 48 of Organic Law No. 130.13 on the Finance Law requires the draft budget to be submitted to the House of Representatives no later than October 20 of the current fiscal year. The bill must be accompanied by 13 supporting documents, including an explanatory memorandum, an economic and financial report, and several thematic reports.
Under Article 46, the finance minister prepares the draft under the authority of the head of government, in line with the general guidelines discussed by the Ministerial Council under Article 49 of the 2011 Constitution.
Submission is only the beginning of the parliamentary process. Article 49 sets a 30-day review period for the House of Representatives, followed by 22 days for the House of Councillors. The bill then returns to the lower house for a final reading within six days.
If Parliament fails to approve the bill before December 31, Article 50 allows the government to open the appropriations required to keep public services operating by decree, while revenue collection continues under the existing rules.
The outgoing government of Aziz Akhannouch previously submitted its 2022 Finance Bill on October 18, 2021, weeks after that year’s elections. The bill included provisions reflecting the government’s electoral commitments.
Economic assumptions face pressure from global markets
The budget guidelines project economic growth of 4.1% in 2027, inflation of around 2%, cereal production of 70 million quintals, oil prices of $70 per barrel and butane prices of $500 per tonne.
According to the published projections, growth is expected to be driven primarily by momentum in non-agricultural activities, without relying on exceptional revenue.
International markets, however, have moved in a different direction. Brent crude futures remained above $100 per barrel at the beginning of October 2026, raising questions about the assumptions underpinning the budget.
During a presentation to Parliament’s finance committees, the economy and finance minister linked the prevailing uncertainty to geopolitical tensions in the Middle East and their effects on energy prices and supply chains.
Organic Law No. 130.13 addresses the credibility of budget forecasts in Article 10, which requires finance bills to present resources and expenditures truthfully. That assessment is based on the information available when the bill is prepared. Article 9, meanwhile, establishes the projected budget balance on the basis of the assumptions underlying the draft.
Government retains room to amend the bill
Jawad Lassri, a higher education professor at the Faculty of Legal, Economic and Social Sciences in Mohammedia who specializes in financial legislation and public finance, told Hespress that a common misunderstanding persists, including among some academics, about the legal status of organic laws.
Lassri stressed that an organic law forms an integral part of Morocco’s constitutional framework because such laws enter into force only after the Constitutional Court confirms their conformity with the Constitution. Any breach of their provisions, he argued, therefore amounts to an explicit constitutional violation.
He said the incoming government would retain the authority to revise the draft Finance Bill, either before its formal submission on October 20 or during parliamentary debate.
Amendments could be introduced by majority parties in Parliament and accepted by the government as a political compromise, or initiated directly by the government before the bill is submitted, Lassri explained.
He added that amendments would remain possible even after the Finance Law entered into force in 2027, through supplementary finance laws.
The issue is particularly relevant given the governing parties’ electoral commitments. PAM, which secured 97 of the House of Representatives’ 395 seats, presented a program involving an announced additional cost of MAD 350 billion between 2027 and 2031.
Some assessments suggest that partial amendments to the existing draft are more likely than a complete rewrite of next year’s budget.
Outgoing government’s guidelines are not an absolute constraint
The 2027 budget guidelines were issued on August 5, 2026, by outgoing Head of Government Aziz Akhannouch. They instructed ministerial departments to rationalize spending and limit the creation of new public-sector positions to essential needs.
The document identified four main priorities: consolidating economic gains, addressing regional and social disparities, continuing to strengthen the foundations of the social state, and maintaining public-finance stability.
Abdelrazak El Hiri, a professor of finance and economics at Sidi Mohamed Ben Abdellah University in Fez, previously told Hespress that the guidelines were administratively binding during the preparation phase but did not politically constrain the incoming government in absolute terms.
The new majority must therefore navigate two overlapping demands: meeting the October 20 statutory deadline and deciding how far it can reshape the budget to reflect its own political and economic priorities.
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