The French state's accounts saw a slight improvement in 2024, with a deficit 6.4 billion euros lower than initial forecasts. An encouraging performance but insufficient to address the concerns linked to a still fragile budgetary situation.
Accounts less degraded than expected
After two years marked by unpleasant budgetary surprises, the year 2024 offers a rare reason for satisfaction at Bercy. According to figures presented by the Minister of the Economy, Éric Lombard, the state deficit amounts to 156.3 billion euros, or 6.4 billion euros less than the forecasts included in the law financial statements at the end of management (LFG). This improvement, as reported The Echoesis partly due to tighter management of public spending and slightly better tax revenues than expected.
State spending was €1.7 billion lower than forecast, thanks to increased control of ministerial budgets and limited use of the precautionary reserve. At the same time, net state revenues exceeded expectations, reaching 281.2 billion euros. Unexpected revenues, such as those from inheritance taxes (+500 million euros) and lower VAT than expected (+1.1 billion euros), contributed to this improvement. However, despite this progress, the deficit remains worrying, representing 6.1% of GDP, well above the initial targets set at 4.4%.
An improvement to temper
Although the budget deficit has improved by 17 billion euros compared to 2023, France's overall financial situation remains fragile. The level of the public deficit, including public administrations, social security and local authorities, will be communicated in March by INSEE. This figure remains closely scrutinized while the government is counting on a gradual reduction to 5.4% of GDP.
At the same time, the government has revised its growth forecasts downward for 2025, now expecting GDP growth of 0.9%, compared to 1.1% initially forecast. Inflation is estimated at 1.4%, a marked drop compared to previous years, but the public debt burden continues to cause concern. Although it was slightly lower than expected in 2024, the latter remains a source of pressure on public finances.
-In April, the tabling of the bill on management results will make it possible to draw up a more detailed assessment of the public accounts. In the meantime, the improvement observed in 2024 offers a welcome breath of fresh air, but it will not be enough to dispel questions about the sustainability of state finances.
A reaction? Leave a comment
Did you like this article? Subscribe to our free Newsletter for engaging articles, exclusive content and the latest news.
