The Ministry of the Economy is organizing a Public Finance Conference this Monday. The objective is to identify possible budget cuts.
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It has been several months that Bercy examines the expenses. The Ministry of Economy and Finance sifts through all budgets to see where it can cut. Whether at the level of the State, local authorities or even in the social sphere, which represents half of the country’s total expenditure.
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Among the tracks, a turn of the screw is envisaged in real estate with the elimination of tax loopholes deemed inefficient and costly, such as the Pinel device for rental investment. A review of the daily allowances paid by Health Insurance is also under study. The government also plans to reduce its support for fossil fuels – brown industries – to better help green industries and support the ecological transition.
Everyone called to make efforts
The government has also asked each ministry to reduce its standard of living by 5%. If everyone plays the game, it should save around 7 billion euros. The government’s objective is to bring the deficit below 3% in 2027… While we are at 4.7%. After the “no matter what” and its billions of euros distributed to households and businesses to help them get through the Covid crisis, it is a question of restoring the trajectory. Reducing our debt, because with rising interest rates, the burden of debt – that is to say the only interests – weighs more and more. It is also a question, with this Assises of public finances, to show our budgetary seriousness to our European partners and to the investors. Especially after the deterioration of France’s rating by the Moody’s agency in April.
But politically, the equation is not simple, especially after a long conflict over pension reform and in a context where inflation remains high. Not to mention that the public services – the hospital, the school – are already on the bone. Élisabeth Borne will be present at these Public Finance Conferences. On the other hand, several elected officials and associations, very upset against the idea of seeing their budgets planed, have already made it known that they would boycott the event.