2024-08-30 18:30:36
National financiers talk about“Red Alert”. While the preparation of the 2025 State Budget is complicated by the absence of a full-time government, the accounts for the current year give rise to serious concerns. In particular, with regard to State revenues and, above all, the finances of local authorities. This was made known on Thursday, August 29, by the resigning Minister of Public Accounts, Thomas Cazenave, to Eric Cockrell, President of the National Assembly’s Finance Committee (La France insoumise), and Charles de Courson, Rapporteur on the General Budget (Liberals, Independents, Overseas and Territories).
“Both corporate and income tax revenues were lower than expected”, Eric Cockrell told AFP after the meeting. “These are the signals we share with councillors, particularly to encourage them to talk to each other and agree on savings between groups”we comment in Thomas Cazeneuve’s office.
However, the main concern concerns local authorities, whose spending is growing faster than revenues. The result: according to estimates circulating within the country, the deficit recorded by the communities in 2024 is likely to double to more than €10 billion.
The gap between spending and income is widening
In 2021, they still have a surplus of 4.5 billion euros. The following year, it falls to 3 billion. Then the situation reverses, and in 2024, the financing needs are estimated at 5.5 billion euros. “We hoped that the deficit would be reduced this year, but instead it should be at least 10 billion euros,” Indicates government source. So, instead of helping to limit France’s public deficit, the municipalities, departments, regions, etc. risk widening it.
The figures for the first seven months of 2024 relate to Bercy. A government adviser noted that total local authority spending had risen by 8.7% in the year to July 2023, also released by a government adviser. L’Opinion. This growth was due to a significant increase in operating expenses (+7%) and investment efforts, especially in the regions (+24.5%) and municipalities (+11.2%).
Revenues have not been growing as fast. For all local authorities, real operating revenues have risen by 5.4% in a year. So the gap between spending and revenues is growing, and that’s very worrying for the government.
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