A news applauded by local authorities.

Elisabeth Borne announced on Friday that the increase in the overall operating grant (DGF) would be 320 million euros in 2023 instead of the 210 million initially planned.

“Initially, an increase in DGF of 210 million euros was announced.

It makes it possible to maintain or increase allocations for 70% of local authorities.

But the context requires a stronger response.

(…) I decided that this increase would be increased to 320 million euros”, declared the Prime Minister in Bordeaux before the Convention of intermunicipalities of France.

"It is thus 95% of the communities that will see their allocation maintained or increased", added Elisabeth Borne who also underlined that the increase in the DGF, the total amount of which is around 27 billion euros, was "a first for thirteen years.

At the end of September, the Minister for Local Authorities Caroline Cayeux announced an increase of 210 million euros.

The chairman of the Local Finance Committee (CFL) André Laignel had denounced a "disastrous" budget for the communities, regretting the lack of indexation to inflation of the DGF and the abolition of the CVAE, a production tax collected by municipalities and departments.

“Green Fund”

On this last point, Elisabeth Borne announced on Friday that the State “will not keep the CVAE which it collected from companies in 2022 and which should have been paid to communities in 2023”.

Consequently, “these are between 300 and 500 million additional euros which will be able to support your investments through the green fund”.

The head of government announced at the end of August the release of a “green fund” endowed with 1.5 billion euros intended for local authorities to help them fight against climate change.



Supposed to be abolished over two years, the CVAE “will be offset by VAT” and the compensation “will be made over the last known years”, from the CVAE paid from 2020 to 2023. Regarding “the explosion in the prices of energy", the government will soon detail the "safety net" that it is renewing in 2023 to "deal with communities in difficulty".

Elected officials on all sides have recently been alarmed by the rise in the energy bill, even if the government estimates that “30,000 of the 36,000 municipalities” will benefit from the 15% cap on the increase in the price of electricity in 2023.

"Awareness"

As the Assembly begins the examination of the 2023 budget on Monday, the Prime Minister pleaded for a “constant dialogue” in “exchange, respect and frankness” with the communities whose relations with the State have been difficult. during the previous five-year term.

“We were heard on the recognition of the fundamental role of intermunicipal cooperation in the implementation of the ecological transition.

There is an awareness at the top of the State of the fact that we will not be able to respond to these issues without the territories, ”reacted the president of Intercommunalities of France, Sébastien Martin.

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