Red alert – The surge in local authority spending, coupled with disappointing tax revenues, could push the public deficit to 5.6% of GDP this year, or even 6.2% in 2025. Between percentages and tight budgets, “20 Minutes” tries to see things more clearly
It’s a red alert for public accounts. The Finance Committees of Parliament received documents from Bercy this Monday detailing the credit proposals of the ministries in 2025. A classic. Except that this time, these documents also mention a “massive slippage” in the public deficit for 2024. 20 Minutes takes stock, while the 2025 budget, “excessive” spending, GDP and distribution of credits by ministry are mixed together.
How much is this public deficit?
The public deficit is the balance of the accounts of the State, Social Security and local authorities. Hey bam, higher than expected, local authority spending could push the public deficit to 5.6% of GDP this year, instead of the hoped-for 5.1%. According to budget documents sent by Bercy, it would widen to 6.2% of GDP in 2025 – instead of the 4.1% anticipated by the outgoing executive – if 60 billion in savings were not made.
In short, this additional spending could “worsen the 2024 accounts by 16 billion euros compared” to the deficit trajectory sent to Brussels in the spring.
Who is behind this skid?
(…) - 20minutes
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