France: budget deficit widens by 10.8 billion euros in September
The budget deficit of the French government has been dug out. & Agrave; the end of September. According to the Ministry of Action and Public Accounts, the deficit is up by 10.8 billion ...
Finance Ministers Bruno Le Maire and Public Accounts Gérald Darmanin leave the Elysée Palace after the Council of Ministers for the 2019 budget in Paris on September 24, 2018. REUTERS / Christian Hartmann
The budget deficit of the French state widened at the end of September. According to the Ministry of Action and Public Accounts, the deficit is up by 10.8 billion euros compared to the same date in 2017. It reached 87.1 billion euros against 76.3 billion euros. euros previously.
This increase in the state budget deficit is mainly due to lower tax revenues. They decreased by just over 6 billion euros.
There are two reasons for this: the gradual introduction of the tax exemption for a portion of taxpayers and the transformation of the ISF, the wealth tax, IFI, property tax estate . Two campaign promises.
And the one that weighs the heaviest is the second one, which has made it possible to take all the income from the financial wealth out of the tax, remaining taxable only the income from the real estate patrimony.
These revenue losses have also not been offset by new tax revenues, and, unlucky for the government, the beginning of the year saw a slowdown in the economy .
To complete the picture, state spending simultaneously increased by 4 billion euros. Even though they were contained because they increased at the rate of inflation, they could not be balanced by dynamic activity.
The government will have to contain more of its budget in 2019 and as it does not intend to do so by further tax increases, it will do so by reducing public spending.