How Does Morocco Allocate Resources Between Rich and Poor?

There is no single, transparent mechanism by which Morocco "divides money" between wealthy and marginalized populations. Resource distribution occurs through a complex mix of:

• General Taxation & Spending: Progressive income tax, VAT, and corporate taxes fund national budgets for health, education, infrastructure, and subsidies (e.g., on butane gas, flour, sugar).
• Targeted Social Programs: The Tayssir conditional cash transfers for school attendance; RAMED medical assistance for the poor; Initiative Nationale pour le Développement Humain (INDH) funding micro-projects in vulnerable areas.
• Royal Initiatives: The Mohammed V Foundation for Solidarity and similar entities distribute aid, often in emergencies or rural development.
• Zakat & Civil Society: Religious alms and NGOs fill gaps.

However, inequality remains high (Gini ~0.39). Critics cite regressive subsidies benefiting the non-poor, limited tax enforcement on elites, regional disparities (urban vs. rural, north vs. south), and corruption. The 2021 "New Development Model" aims to overhaul this, but implementation is ongoing.

For current policy details, consult the Ministry of Economy and Finance or High Commission for Planning reports.