Adopted in late December, the 2024 budget is already obsolete, according to elected officials from both the majority and the opposition. Especially since it was built on a growth forecast of 1.4% that no economist believed.
We are waiting for the minister
“We finished the year lower than expected” with the public deficit falling by two billion euros in 2023. “We have just spent a few hundred million” on agriculture. “We need to make some decisions, maybe freeze part of the 2024 budget,” estimated the Renaissance Group executive.
Certainly, the 400 million euros promised to farmers is the thickness of the line over the 1,600 billion euros of public spending planned for this year. But they fall badly
But we will wait until the Minister of Public Accounts arrives, added the elected official, while former minister Thomas Cazeneuve hopes to be reappointed when the government is completed in the coming days.
Certainly, the 400 million euros promised to farmers is the thickness of the line over the 1,600 billion euros of public spending planned for this year. But it’s bad, when France ranks 25th out of 27 countries in the European Union for debt/GDP ratio.
AESH, School Nurses: Nothing on funding
Last Tuesday, during his general policy speech, Gabriel Attal, who renewed his promise to cut taxes by 2 billion euros for the middle classes, barely touched on deficit reduction. But he repeated the “course”: bringing the public deficit below 3% of GDP in 2027, compared to 4.9% in 2023.
During her intervention, “new announcements were made of costs for the care of AESH (accompanying disabled students) during canteen time or school nurses, but no information on financing”, complains LR Véronique Luvaggi. “It is high time the government tackles this issue of deficit.”
The savings review is coming up in March
In November, the government launched a spending review to look for sources of savings, particularly in the professional support bush and the more densely populated area of medical devices. The first proposals are expected in March, Gabriel Attal confirmed.
“We started working very early. We want to favor change on simple plane strokes,” emphasizes budget rapporteur Jean-René Cazeneuve (Renaissance). “It is absolutely essential to keep our commitments to avoid the ambiguities of the rating agencies.”
“Hard Decisions”
From early January, before the agricultural crisis, Economy Minister Bruno Le Maire warned that “difficult decisions” were to be made in terms of austerity.
This year, the state has removed almost all price caps put in place to fight inflation. The hike in electricity between 8.6% and 9.8% in February is unpopular, as is the deductible on medicines.
But Bercy reiterated that “at least” an additional 12 billion euros would need to be saved in 2025 to respect France’s path and European commitments.
Among the avenues put forward in the assembly, Renaissance group executives are calling for a refocusing of the research tax credit on SMEs or an increase in taxation on large inheritances.
“Take the money where it’s at”
During the previous budget, MoDem allies for their part called in vain for a tax on superdividends and then on share buybacks of the largest companies, measures with limited returns, but whose centrists stressed the “symbolic” scope of tax justice.
In opposition, “we are still waiting for structural savings” from the government, said RN deputy Jean-Philippe Tanguy. “Every time, they spend again. With farmers, they play the check policy instead of dealing with large-scale distribution,” he opines.
