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Video length: 2 minutes
Public Deficit: Government’s Ways to Save Money
In 2023, the public deficit was severely reduced. The government was counting on a deficit of 4.9% of GDP, but it will eventually reach 5.6%. What are the executive’s options to save money?
(France 2)
In 2023, the public deficit was severely reduced. The government was counting on a deficit of 4.9% of GDP, but it will eventually reach 5.6%. What are the executive’s options to save money?
Concerns are growing at the highest levels of the state as the public deficit continues to rise. Instead of the 4.9% expected for 2023, it will eventually reach 5.6% of GDP. To find out, the senators forced open the door of Bercy on the afternoon of Thursday March 21 and searched the state accounts. They say they find the deficit could worsen, if nothing is done, to 5.7% in 2024 and 5.9% in 2025.
Bring the deficit below 3% in 2027
So where can you save money to reverse the scenario? Among the ways mentioned, the executive is looking to reduce social spending. This would include, for example, new reforms to unemployment insurance or restrictions on receiving certain benefits. Some MPs have also proposed suspending the income tax scale or even reviewing certain tax giveaways to businesses in particular. These austerity measures have one objective: to bring the deficit below 3% in 2027, as the government has committed to doing.
