Public accounts: local authorities lose 3.9 euros in 2023

by time news

2024-07-22 11:43:34

They are clearly flawed. Local authorities lose 3.9 billion euros in 2023, according to a report from the Court of Auditors published this Monday, with the worst affected sectors. The latter, whose expenses are important to medico-social action, for example with the payment of the Active Solidarity Income (RSA), saw their savings drop by 4.7 billion euros.

They have suffered greatly from the downturn in the real estate market, with a good portion of their income coming from the value transfer tax (DMTO) collected on real estate transactions, which includes the so-called “notary fees”.

Less important for areas

In 2023, the revenues of the DMTO for all regions combined fall by 4.5 billion euros, points to the Court, which also recommends reforming the financial structure of the departments, exposed to system cycles – wealth while most of their expenses are not reasonable. “Around the war zones” the risk of being weakened in 2024 by the continued fall of the DMTO, warned the Court.

The municipalities saw their savings (not considering the repayment of their debts) decrease by 0.4 billion euros, their operating expenses increased under the influence of inflation. This phenomenon affects all regions, with operating expenses generally increased by 6.1%, due to the increase in their incomes, salary increases offered or even higher interest on their debt.

But their debt increased slightly, going from 186 billion to 188 billion euros. The provinces and territories are the only ones to see an increase in their savings, by 1 and 0.2 billion euros, thanks to the increase in their income from property tax. The regions should contribute to the consolidation of the public finances, but “the existing organizational law does not include a strong mechanism to enable the achievement of the objectives related to the local public finances” challenged the Court.


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