2023-07-16 17:10:00
After having crossed the 3,000 billion euros of debt, the French State is at the foot of the wall. Added to this is finally sluggish growth for 2023, at +0.6%, according to INSEE, reducing the State’s hope of reducing its public deficit. Result, it is towards the end of the period of “whatever it costs”, started for the Covid and prolonged with the war in Ukraine, which is confirmed in France. As a result, and for the first time since 2015, a drop in state spending, excluding debt interest, according to Bercy.
This first trend reversal will be due thanks to the cessation of energy tariff shields, according to a preparatory document for the budget published Sunday by Bercy, according to the ministry.
The credits granted to the various missions of the State for 2024 reach 356 billion euros, down 4.8 billion euros compared to 2023, according to this document, the progressive end of the tariff shields for gas and electricity explaining this decline.
The end of energy shields
Expenditure allocated to the “public energy service” program, which includes energy shields and the exceptional fuel allowance, fell from 21.7 billion euros to 7.7 billion euros, i.e. a saving of 14 billion , according to the “expenditure ceilings of the 2024 Finance Bill” sent to Parliament on Sunday.
The Ministry of the Economy also sees its spending ceiling drop by more than three billion euros with the end of the support window for companies that consume a lot of energy.
Reduce the deficit
Savings are also made possible by the drop in unemployment, with less recourse to subsidized contracts from companies or on housing with the abolition of the Pinel system and the overhaul of the zero-rate loan announced in June.
The government has set itself the objective of reducing to 108.3% of Gross Domestic Product in 2027 (compared to 111.6% at the end of 2022) France’s heavy indebtedness, which ranks it among the poor European students, and to bring it under European objective of 3% the public deficit (4.7% at the end of 2022).
France had not gone far from a degradation of its rating by the agency Standard’s & Poor’s but the agency Fitch has already lowered it.
Among the best-off ministries, National Education sees its appropriations increase to 64.2 billion euros, i.e. 3.9 billion euros more, and the provisional ceiling for Defense is increased by 3.3 billion euros. euros to 47.2 billion euros.
The increase in spending for the army will be devoted to armaments and the revaluation of salaries, according to Bercy.
The missions concerning the Ministry of the Interior and Justice are also upgraded.
Bercy also ensures that an additional seven billion euros will be dedicated to ecological planning.
The mission “ecology, sustainable development and mobility” increases by 2.3 billion euros and actions are planned for the energy renovation of housing, cleaner mobility or even via the renewal of the “green fund” aimed at communities.
(With AFP)
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