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Morocco Increases 2026 Budget to Cushion Global Economic Shock and Keep Energy Prices Stable
The Moroccan government approved a supplemental decree on Thursday to open additional credits for the 2026 general budget. The measure, presented by the delegate minister for the Budget, aims to fund emergency actions linked to the war in the Middle East, protect the purchasing power of citizens by stabilising gas‑butane and transport tariffs, and cushion the impact of recent floods in northern regions. The decree also reinforces the capital of several state‑owned enterprises and covers unforeseen expenses stemming from volatile international commodity markets, especially the surge in global natural‑gas, oil and coal prices.
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Government Approves Supplemental Budget Credits
The Moroccan Council of Ministers adopted on Thursday decree No. 2.26.395, opening additional credits for the 2026 general budget. The decree was presented by the delegate minister attached to the Minister of Economy and Finance, responsible for the Budget.
Why the Extra Funding Is Needed
Unforeseen expenses related to the ongoing conflict in the Middle East require immediate fiscal resources. The government plans to set aside provisions that will cover the possible continuation of the war’s economic repercussions.
In addition, the decree seeks to protect citizens’ purchasing power by maintaining the stability of butane gas prices and the tariffs for passenger and goods transport. It also aims to keep electricity prices at their current level despite a sharp rise in global natural‑gas, fuel‑oil and coal markets.
Other Priorities Covered
- Funding for royal directives dealing with flood damage in the northern regions of the Kingdom.
- Strengthening the capital of several public enterprises.
- Covering exceptional and unexpected expenses caused by the volatile international economic environment.
Broader Economic Context
The supplemental credits are a response to a combination of external shocks – war‑related supply chain disruptions, soaring energy commodity prices, and climate‑related emergencies – that threaten Morocco’s macro‑economic stability in 2026.
By injecting additional resources, the government hopes to cushion these shocks while avoiding a sharp decline in real wages and consumer confidence.