The State will increase its main allocation to communities by 220 million euros in 2024

The State will increase its main allocation to communities by 220 million euros in 2024, Minister Dominique Faure announced on Monday September 25 in an interview with La Gazette des Communes. The 2024 budget, which must be presented to the Council of Ministers on Wednesday, “plans an increase of 220 million euros in this allocation” global operating system (DGF), specified the Minister for Local Authorities.

“We are mobilizing 100 million euros for the rural solidarity grant, 90 million euros for the urban solidarity grant and 30 million euros for the intercommunality grant,” detailed Dominique Faure.

An increase for the second year in a row

After thirteen years of freezing this resource paid by the State to municipalities, intermunicipalities and departments, the DGF is increasing for the second year in a row. In 2023, the government had already increased it by 320 million euros, already to deal with high inflation. The overall operating allocation will thus reach just over 27 billion euros in 2024.

Despite the additional 220 million euros announced for 2024, certain associations of local elected officials could be disappointed. In recent weeks, they have in fact called for an indexation of the DGF, the main allocation they have, on the level of inflation, which reached 4.9% over one year in August according to INSEE.

In addition to the 26.6 billion DGF, in 2022 the State returned to communities more than 80 billion euros in revenue from national taxes and VAT, according to a recent report from the Court of Auditors. Local taxes, collected directly by communities, brought in 78 billion euros in 2022.