“Revenues have decreased, that’s the main problem,” says Eric Coquerel on the subject of the public deficit.
According to the chairman of the National Assembly’s finance committee, Eric Coquerel (La France insoumise), who received the budget documents sent to parliamentarians by Bercy on Monday, the public deficit could reach 5.6% of GDP this year instead of the hoped-for 5.1%, and would widen to 6.2% of GDP in 2025 – instead of 4.1% – if 60 billion euros in savings were not made. Even with 30 billion euros in savings, the public deficit would still stagnate at 5.2% of GDP next year, Mr. Coquerel was able to read.
The public deficit is the balance of the accounts of the State, social security and local authorities.
“Revenues have decreased, that’s the main problem”Mr. Coquerel analyzed on Tuesday on BFM Business. “From there, there are two policies”he continued: taxation “capital income of the richest” and the increase in wages, “so that more contributions come in” in the coffers of the State and Social Security.
According to “a first analysis” d’Eric Coquerel, “Only defense and security budgets will increase faster than inflation” next year, he explained in a press release. Conversely, “The most affected policies should be official development assistance (-18% without taking into account inflation), sport (-11%), agriculture (-6%), overseas (-4%), ecology (-1%) and health (-0.8%)”. Work (+ 1%) and national education (+ 0.5%) “will also be affected by a reduction in resources”since the increase in planned credits is lower than a foreseeable inflation of around 2% next year.
According to Mr. Coquerel, taking into account inflation and the natural end of certain programs, this draft budget – which the next executive will be able to modify as it wishes, but within very tight deadlines – “constitutes a decrease of 15 billion euros compared to the finance law adopted in 2024.” Added to this would be 5 billion in savings in the social security financing bill, making a total of 20 billion.
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