a dangerous balance between public revenue and expenditure

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FRANCE 2

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V.Frédéric, B.Briffaut, M.Mullot, M.Cazaux, L.Dulois – France 2

France Televisions

The government is preparing purchasing power measures that could cost up to 50 billion euros. Wednesday, June 29, the government assured to have the means because tax revenues are higher than expected.

In the matter of public finances, the government will have to compose between revenue and expenditure, in search of balance.We must, and this is what we are doing, restore order in our accounts today“Gabriel said AttalMinister Delegate in charge of Public Accounts. The good surprise of the recipes tax this are the 55 billion euros more than expected collected. Income linked to inflation and post-covid economic recovery.

Prices are therefore increasing, VAT receipts also tend to increase, including with consumption (…) We see that there are a lot of job creations, so there are a lot of social security contributions and then there was margins, corporate profits“, explains Mathieu Plane, economist at theOFCE. This can face large expenditures such as measures in favor of purchasing power which amount to 50 billion euros. This fragile balance can be upset by the weight of the debt. When interest rates increase by one point, the state must repay more than 2 billion euros each year.

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