State financiers are speaking of a “red alert”. While the preparation of the state budget for 2025 is made extremely complex by the absence of a full-time government, the accounts for the current year raise serious concerns. Especially with regard to state revenues and, above all, the finances of local authorities. This was indicated by the resigned Minister of Public Accounts, Thomas Cazenave, on Thursday 29 August, to the president of the finance committee of the National Assembly, Eric Coquerel (La France insoumise), and to the general rapporteur of the budget, Charles de Courson. (Liberties, independents, overseas and territories).
“There is less revenue than expected, whether from corporate tax or income tax”, Eric Coquerel told Agence France-Presse after this meeting. “These are signals that we share with parliamentarians, in particular to encourage them to engage in dialogue between groups and reach an agreement on savings”we discussed in Thomas Cazenave’s office.
However, the main concern is for local authorities, whose expenditure is growing faster than revenue. Result: according to estimates circulating in the State, the deficit recorded by the communities risks doubling by 2024, to exceed 10 billion euros.
Growing gap between expenses and income
In 2021, they still managed a surplus of 4.5 billion euros. It fell to 3 billion the following year. The situation then reversed, with an estimated financing need of 5.5 billion euros in 2024. “We had hoped that this deficit would be reduced this year, but instead it should reach at least 10 billion euros.” says a government source. Instead of helping to limit the French public deficit, municipalities, departments, regions, etc. risk contributing to its widening.
The data for the first seven months of 2024 relate to Bercy. In one year, from July 2023 to July 2024, total expenditure by local authorities increased by 8.7%, says a government adviser, a figure also published by Opinion. The increase is due to both operating costs (+7%) and investment efforts, which are clearly increasing, especially in the regions (+24.5%) and in the municipalities (+11.2%).
Revenues are not growing at such a fast pace. For all local authorities, real operating revenues increased by 5.4% in one year. Hence the growing gap between expenditure and revenues, which is of such concern to the government.
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