The year 2021 was marked by a new sharp increase in public spending linked to the health crisis… But not only: spending unrelated to the pandemic has also jumped, notes this Monday the Court of Auditors, in its annual report on the state budget.
Last year, overall expenditure from the general state budget increased by 37.1 billion euros compared to 2020, to reach 426.7 billion euros. While emergency spending due to the continuation of the health crisis fell by 5 billion euros, those linked to the deployment of the recovery plan increased by 17.5 billion euros compared to 2020.
Other expenses also jumped, by 5.1%, or 17.6 billion euros. “This increase is significantly higher than in 2020, since non-crisis spending had then increased by 2.6 billion euros”, she insists, after having already expressed concern in a previous report about the evolution public spending once the health crisis has passed.
This increase is largely explained by the payment of inflation compensation (3.3 billion euros), the ramping up of the military programming law (+ 2.7 billion) and the increase in the cost of debt interest (+ 2 billion). A first since 2011, linked to the increase in interest rates and inflation.
“Significant budgetary risks for the years to come”
“Beyond the strong uncertainties linked to the current geopolitical context and its economic and budgetary consequences, the review of management for 2021 leads to highlighting several significant budgetary risks for the years to come”, estimates the Court in a press release. .
She mentions in particular the increase in the interest expense of the debt and the carry-overs of credits “much higher than those usually observed”. A “sprain” to budgetary principles, considers the Court of Auditors. The Ministry of the Economy responded to this criticism by highlighting the context of uncertainty of the health crisis.
In addition, the Court of Auditors deemed the general account of the State for the 2021 financial year to be “regular and sincere”, despite a certain number of “significant” anomalies: a lack of provision for the financing of military expenditure for ” at least 3 billion euros”, or even an overvalued State participation in EDF and undervalued in the Caisse des dépôts.