The health crisis and the economic management of the consequences of the pandemic will cost much more than expected in 2021: 47 billion euros more, to be precise.
The 2021 Finance Law forecast a budget deficit of 173.3 billion euros. Finally, it will be around 220 billion euros, announced Olivier Dussopt, the Minister of Public Accounts, at the microphone ofEurope 1. This represents 47 billion euros more than initially planned, ” consequence of the support measures that we continue to take to best support the recovery », Explains the minister. Among these 47 billion, 15 billion are allocated to additional expenditure to support companies in sectors which are still suffering the consequences of the health crisis: hotels, restaurants, tourism, cafes and bars.
Aid still in force
We will have to wait until June 2 to learn more about these unforeseen expenditures since the amending finance bill will be presented on Wednesday. Olivier Dussopt also confirmed that the “whatever the cost” of Emmanuel Macron will continue, “ as long as there are constraints weighing on companies, we are here to respond “. The Minister also adds that the gradual drying up of support measures will be slower for the sectors still struggling with difficulties. The deficit could therefore widen a little more.
The price of ” whatever the cost “
This much larger-than-expected budget deficit should further widen the public deficit, which so far stood at 9% of gross domestic product. As for the public debt, it is 118% of the GDP. The government is still forecasting annual growth of 5% in 2021, but it is unlucky: GDP growth in the first quarter, which was announced at 0.4%, will ultimately be in the red at -0.1%.