A lower-than-expected public deficit thanks to growth – economy

The more sustained growth than expected will allow France to contain the public deficit at a lower level than that announced previously, despite government spending which will increase.

It was during the public finances orientation debate at the National Assembly that Bruno Le Maire gave the good news: the public deficit for 2021 will be contained at ” less than 9% ”, Instead of the 9.4% which were included in the amending finance law. It is thanks to growth and additional tax revenues that the Ministry of the Economy can achieve this small feat: GDP growth should indeed be 6% this year, instead of the 5% long predicted by the government. It was Emmanuel Macron who unveiled the new figure during his speech at the beginning of the week.

Rising tax revenues

The Minister of the Economy refuses to ” devote all of the additional tax revenues linked to the 6% growth to increasing public spending “, Recalling that there was no” jackpot »When the public debt exceeds 100%. And yet, this does not prevent the government from providing all the same an increase in the budget of the ministries of 10.8 billion euros for 2022. It is an increase ” similar “To that of 2021, supports Bruno Le Maire, and” half of this new expenditure is the result of programming laws, therefore of laws to invest in the sovereign activities of the State “. Defense and education in particular will receive an additional 1.7 billion euros each.

The health crisis persists

The other half of these expenses will be devoted to the management of the health crisis: for guarantees on PGEs (loans guaranteed by the State), emergency accommodation or the extension of the university ticket to 1 euro. And Emmanuel Macron announced new measures such as engagement income for young people, or a new investment plan to support and accelerate activity. In 2022, the deficit should be reduced to 5.3% of GDP thanks to a budget of “ back to normal “.