Local authorities lost 3.9 billion euros in 2023, estimates the Court of Auditors in a report

The regions saw their gross savings fall by 0.4 billion euros, their operating expenses having increased under the effect of inflation.

The Court of Auditors is concerned about the state of the finances of local authorities in its annual report on their financial situation published on Monday 22 July. The magistrates of the rue de Cambon observe “an overall drop in savings” of almost 4 billion euros. The situation is particularly difficult for the departments.

The departments, whose expenses are allocated to medical-social action, with the payment of the Active Solidarity Income (RSA), have seen their savings melt by 4.7 billion euros. They have suffered greatly from the slowdown in the real estate market, a large part of their revenue coming from transfer taxes for consideration (DMTO) levied on real estate transactions.

In 2023, DMTO revenues from all local authorities combined will have fallen by 4.5 billion euros, points out the Court, which once again recommends reforming the departmental financing system. “About twenty departments” risk being weakened in 2024 by the continued fall in DMTOs, warns the Court.

The regions, for their part, saw their gross savings (not taking into account the repayment of their debts) decrease by 0.4 billion euros, their operating expenses having increased under the effect of inflation. This phenomenon affected all the communities, operating expenses having increased overall by 6.1%, due to the increase in their bills, the salary increases granted or even higher interest on their debt.

But their debt has only increased slightly, from 186 billion to 188 billion euros. The municipalities and inter-municipalities are the only ones to see their savings increase, by 1 and 0.2 billion euros respectively, thanks to the increase in their revenue from property taxes. The communities are supposed to contribute to the cleaning up of public finances, but “the programming law in force does not include a mechanism capable of allowing the achievement of the objectives relating to local public finances”, criticize the magistrates of the rue Cambon.