Increased local authority spending could increase the 2024 deficit by 16 billion euros, according to Bruno Le Maire

“The extremely rapid increase in local authority spending (…) could alone degrade the 2024 accounts by 16 billion euros”worried the resigning Minister of the Economy Bruno Le Maire on Monday, September 2, in a letter addressed to parliamentarians and which franceinfo was able to consult.

In this letter addressed to the general rapporteurs and the chairmen of the Finance Committees of the two assemblies, Bruno Le Maire and his resigning Minister Delegate for Public Accounts, Thomas Cazenave, believe that this increase in expenditure could “degrade the 2024 accounts by 16 billion euros compared to” to the deficit trajectory sent to Brussels in the spring.

Already lowered by “nearly 30 billion euros” In the spring, the tax revenue forecasts may not be met. “given the change in the composition of growth, which is less favourable to tax revenues”.

Regarding macroeconomic forecasts, the government is now counting on growth of 1.1% in 2024, compared to 1% previously anticipated, due to a “growth acquisition by mid-year 2024 higher than anticipated and a forecast of growth acceleration in the 3rd quarter”. “It is up to the next government to modify the elements prepared, if necessary, both in terms of income and expenditure”the document concludes.

The chairman of the Finance Committee of the National Assembly, Eric Coquerel (LFI) and the general budget rapporteur, Charles de Courson (Liot), had warned Mr Cazenave by letter on Friday that they would go in person to Bercy to consult budget documents for 2024 and 2025 if the minister did not send them by Monday “summary documents” allowing us to understand the work in progress.