Bercy forecasts a decrease in state spending in 2024, a first since 2015

Europe 1 with AFP / Photo credit: XOSE BOUZAS / HANS LUCAS / HANS LUCAS VIA AFP 18:41 p.m., July 16, 2023

State spending, excluding interest on the debt, is expected to decline in 2024 thanks to the end of energy tariff shields, according to a preparatory document for the budget published Sunday by Bercy, a first since 2015, according to the ministry. The credits granted to the various missions of the State for 2024 reach 356 billion euros, down 4.8 billion euros compared to 2023, according to this document, the gradual end of tariff shields for gas and electricity explaining this decline.

€14 billion in energy savings

The expenses allocated to the program of the "public energy service", which includes the energy shields and the exceptional fuel allowance go from 21.7 billion euros to 7.7 billion euros, a saving of 14 billion, according to the "spending ceilings of the draft Finance Law 2024" transmitted Sunday to Parliament. The Ministry of the Economy also sees its spending ceiling fall by more than three billion euros with the end of the support window for energy-intensive companies.

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Savings are also made possible by the fall in unemployment, with the lesser use of subsidized contracts of companies or on housing with the abolition of the Pinel device and the overhaul of the Zero Rate Loan announced in June. The government has set itself the objective of reducing the heavy debt of the France to 108.3% of the Gross Domestic Product in 2027 (against 111.6% at the end of 2022) which ranks it among the worst European students and to bring the public deficit below the European target of 3% (4.7% at the end of 2022).

Increased spending on the military

Among the best-off ministries, National Education sees its appropriations increase to 64.2 billion euros, i.e. 3.9 billion euros more, and the provisional ceiling for Defence is increased from 3.3 billion euros to 47.2 billion euros. The increase in spending for the army will be devoted to armaments and the revaluation of salaries, according to Bercy. The missions concerning the Ministry of the Interior and Justice are also upgraded.

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Bercy also ensures that seven billion euros additional will be dedicated to ecological planning. The "ecology, sustainable development and mobility" mission increases by €2.3 billion and actions are planned for the energy renovation of housing, cleaner mobility or through the renewal of the "green fund" focused on local authorities.