2023-07-07 08:09:00
The Court of Auditors aims to generate 60 billion euros in savings by 2027. To achieve this, it intends in particular to tackle tax loopholes.
By NB with AFP The Court of Auditors aims to generate 60 billion euros in savings by 2027. © MAGALI COHEN / Hans Lucas / Hans Lucas via AFP Published on 07/07/2023 at 08:09
Streamlined tax loopholes, better targeted public aid… The Court of Auditors detailed its proposals on Thursday to improve the quality of public spending and reduce it by several tens of billions of euros by 2027. “To restore our room for maneuver , a substantial effort will have to be made on public spending” so as to “ideally” release 60 billion euros in savings by 2027, underlined the first President of the Court, Pierre Moscovici, by presenting the “contribution from the institution to the public expenditure review launched by the government.
This “contribution” is made up of nine thematic notes which summarize the Court’s proposals on various subjects: tax loopholes, education expenditure, housing policy or financial relations between the State and local authorities… Less than three weeks after the assizes of the public finances organized by the Ministry of the Economy to display its desire to control public expenditure and to redress the bloodless finances, “we can spend less and do better in a very large number of areas of public action”, summed up Thursday Pierre Moscovici.READ ALSO Validation of public accounts: let’s change the method!
Tax loopholes in the sights of the Court of Auditors
Haro, for example, on tax loopholes, which cost the State no less than 94.2 billion euros in 2022. The financial magistrates of rue Cambon suggest establishing a “cap mechanism” for their cost between 2023 and 2027, and to limit the duration of any new tax advantage or tax reduction to four years. READ ALSO Income tax: make us want to pay it!
Better target spending on work-study and vocational training
On the subjects of work-study and vocational training, which mobilized “21.8 billion in public funding in 2022”, the Court pleads for “better targeting public spending towards priority audiences” and “strengthening quality requirements training and the fight against fraud.
Be careful also that the support schemes for companies in times of crisis remain temporary, the Court noting the “temptation” of the State to perpetuate longer than initially planned the loans guaranteed by the State (PGE) or the fund of solidarity. READ ALSO Foundations of public finances: why is it so difficult to cut spending?
A more effective housing policy
On the housing side, public policies have mobilized “38.2 billion euros in 2021, or 1.5% of GDP” or double the European average, detailed Pierre Moscovici. “And yet, many of the devices have not demonstrated their effectiveness,” he criticized.
Hence the Court’s call to channel aid towards “the most disadvantaged groups” and to entrust more responsibilities to local players in housing policy. This second recommendation also applies to educational expenditure. Recommendations for the most part already formulated by the Court and not necessarily acted upon.
Get out of debt “to be able to invest”
“These nine notes are only a first contribution” to the public expenditure review, insisted the first president, promising to publish new notes “regularly”, as the Court had already done in December 2021 with 13 thematic works published strategically ahead of the presidential election. To succeed, the review of public expenditure cannot be carried out only in the secrecy of ministerial cabinets, warned Pierre Moscovici. READ ALSO Public finances: how Bercy wants to reduce the deficit
“An accomplished spending review means putting all the spending together and bringing all the stakeholders around the table: local authorities, social security bodies, professional federations, associations, actors in the field, civil society…”, said he listed. An ecumenism that is anything but obvious, after the main associations of elected officials boycotted the foundations of public finances in June.
One thing is certain rue Cambon: if the public debt of France crossed 3,000 billion euros in the first quarter of 2023, there is no question of practicing the policy of the plane. “Austerity is the enemy of growth and public service. We are not saying that we must get out of debt in principle, but in order to be able to invest”, in particular in the ecological transition, according to Pierre Moscovici.
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