Local authorities were in a favorable financial situation at the end of 2019 and are tackling the Covid-19 crisis in better conditions than the state, according to a report by the Court of Auditors published on Monday.
The situation of the communities (municipalities, departments, regions) improved in 2019 for the third consecutive year with a level of expenditure contained, in particular with regard to the wage bill, underlines the court in its annual report on local finances.
Better than the state
They address "overall the year 2020 and the crisis linked to the coronavirus epidemic in a better situation than the state," she notes.
Communities last year incurred 186 billion euros in operating expenses, 64 billion investment expenses, and their gross savings increased by 8.8%. Courts in particular emphasize the dynamism of their tax revenue (+ 3.1%) for a total of 150.7 billion euros in 2019.
More difficult situation for the “little ones”
This general improvement, however, is reflected in significant differences according to the categories of communities and within each of them. The overall financial situation of the communal block (communes and intermunicipalities) "seems the most favorable". Many municipalities, particularly small ones, are however tackling the crisis "under already difficult conditions and could see their financial situation deteriorate as early as 2020".
Heterogeneous situation also of the departments. That of the most populated, from 500,000 to one million inhabitants, is improving, but to a lesser extent than that of the other strata due to the growth in their social spending. The finances of the departments should also "be strongly affected by the crisis" from 2020 "both in expenditure (risk of increase in social spending) and in revenue".
More expenses for the regions
Finally, the increase in operating expenses of the regions remains higher than that of other communities and varies significantly from one to the other.
The contractual arrangement between the State and the communities set up in 2018 to limit their operating expenses has also been suspended due to the epidemic.
The Court of Auditors will publish at the end of 2020 a first analysis of the impact of the crisis on communities in the second volume of its report.
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