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Video length: 2 min
Public deficit: the government’s ways to save money
The public deficit seriously slipped in 2023. The government was counting on a deficit of 4.9% of GDP, but it would ultimately reach 5.6%. What are the executive’s options for saving money?
(France 2)
The public deficit seriously slipped in 2023. The government was counting on a deficit of 4.9% of GDP, but it would ultimately reach 5.6%. What are the executive’s options for saving money?
At the highest level of the State, concern is growing as the public deficit widens. Instead of the 4.9% expected for 2023, it would ultimately reach 5.6% of GDP. To find out, senators forced open the door of Bercy on the afternoon of Thursday March 21 and delved into the state accounts. They say they have discovered that the deficit could even worsen, if nothing is done, to 5.7% in 2024 and 5.9% in 2025.
Bring the deficit below 3% in 2027
So where can you save money to reverse the scenario? Among the avenues mentioned, the executive is considering reducing social spending. This would involve, for example, a new reform of unemployment insurance or a restriction of access to certain benefits. Several MPs also propose freezing the income tax scale, or even reviewing certain tax gifts, particularly to businesses. These savings measures have one objective: to bring the deficit below 3% in 2027, as the government has committed to doing.
