2024-02-19 21:00:00
To reduce the public deficit as best as possible, the government announced that it would further reduce the expenditure planned for 2024. Ministries’ operating budget reduced, CPF reduced, energy renovation aid envelope folded… total, Bruno Le Maire is aiming for ten billion euros in savings.
With a public deficit of more than 5%, France is one of Europe’s poor performers. For 2023, the government was targeting 4.9%, but it will “probably be difficult to meet” this objective, according to what Bruno Le Maire explained to the press this Monday, February 19: “[…] our revenues were much less dynamic than expected at the end of the year.” For 2024, the minister is still counting on 4.4%, with a longer-term objective of less than 3% in 2027. Except that all this is complicated by global geopolitical crises.
“This context, it is incredibly difficult and incredibly threatening,” he complained. “If tomorrow the situation were to get even worse in the Red Sea, of course it would have an impact on growth. If tomorrow the situation worsens in Ukraine, of course it would have an impact on growth,” he said. -he warned. We will still have to do better if we want to raise the country’s rating.
As reported by AFP, the verdict from Fitch and Moody’s is expected on April 26, that of S&P Global Ratings on May 31, just before the European elections. “We asked the State to tighten its belt. And we made the choice not to touch the social security budget or not to touch the budget of local authorities,” declared Bruno Le Maire.
Half of the savings, or five billion euros, will have to be found in the operating budget of the ministries. The Minister responsible for Public Accounts, Thomas Cazenave, announced the establishment of a flat-rate contribution for employees to the personal training account (CPF), the details of which will be presented in April. He also announced that MaPrimeRénov will not be increased as planned (one billion savings against ecology), and that public development aid will be reduced by 800 million euros.
#Public #finances #Bercy #tightens #belt #raise #French #rating