The government releases 220 million euros for local authorities

by time news

2023-09-25 09:27:27
Bruno Le Maire, Minister of the Economy, and Thomas Cazenave, Minister Delegate in charge of public accounts, at the Elysée, in Paris, July 21, 2023. GONZALO FUENTES / REUTERS

The draft budget for 2024 provides for a new additional effort from the State in favor of local authorities: 220 million euros. After more than a decade of dry rule, the government of Elisabeth Borne reversed the trend in 2022 by loosening the purse strings. The change in strategy is therefore confirmed this year, while municipalities and departments are warning of the financial difficulties they are encountering.

The increase in the overall operating allocation (DGF) of 220 million euros for 2024 is added to that of 320 million euros granted for 2023. Inflation taken into account, the effort planned for next year should therefore be proportionally equivalent.

The DGF, which is nearly 27 billion euros in 2023, constitutes the main allocation that the State allocates to municipalities, intermunicipalities and departments. Compensation for the skills transferred to them as part of decentralization, it is based on criteria of population, wealth, resources and expenses. And she is free to use.

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For the government, this is “strengthen the resilience of community resources”explains the Minister of Ecological Transition and Territorial Cohesion, Christophe Béchu. “Never has a government done so much to support communities in operation and investment”he argues, wanting to see it as proof of “the sincerity of the commitment” of the State towards them.

Tense context

On September 15, Dominique Faure and Thomas Cazenave, the delegate ministers respectively responsible for local authorities and the budget, announced another measure expected by local elected officials: the extension to development expenses of the compensation fund for the tax on added value. This represents an additional increase of 250 million euros in favor of local investment. The measure is intended to encourage the development of sports fields or green spaces.

Furthermore, in September, the President of the Republic promised to provide the “green fund” with 500 million euros to help communities renovate educational establishments. In addition, the allocation for the protection of biodiversity and the enhancement of rural amenities, which increased by 71% in 2023 to reach 41.7 million euros, will more than double in 2024: it will be 100 million euros. euros. This was announced in June during the presentation of the France ruralities plan. Finally, the Prime Minister promised 30 million euros in April to improve the issuance of identity documents.

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