In late October, the deficit of the French state reached 84.7 billion euros, down slightly compared to € 86 billion recorded a year earlier on the same date, announced Tuesday the Ministry of Finance.
Specifically, the state saw its total expenditures to the end of October to fall by 2.3% year on year, and revenue down 2.8%.
When spending down unless revenue
To explain this decline in spending, the state highlights the contraction of the deficit special accounts covering advances to local authorities and special pensions. It shrank to 4.45 billion euros, against – 4.97 billion a year earlier, due to a sharp decline in loans to local authorities
On the expenditure. related to the overall budget and levies on revenue, they reached the end of October 317.9 billion euros, down 7.6 billion year on year. Consequence of low interest rates, debt burden, one of the biggest state spending each year, decreased by EUR 2 billion a year.
L impact of CICE
If the expenses were down, revenue fold more. In late October, excluding refunds and rebates, they amounted to 237.6 billion euros, a decrease of 6.8 billion compared to the amount recorded in October 2013.
The product of ‘corporation tax to October 31 fell 34.3% year on year as a result of the entry into force of the tax credit for Competitiveness and Employment (CICE). Over the same period, revenue from income tax were up 6.4% year on year.
The VAT, which alone weighs half of the revenues of the State with 114.7 billion euros reaped the end of October, reported 2.2% higher than October 31, 2013, demonstrated the resilience of consumption.
Michel Sapin is confident
Despite half fig half grape results, Michel Sapin, the Minister of Finance is convinced that improvement in the deficit will continue in the coming months. Last week, he announced that the government deficit would rise from 4.4% to 4.1% of GDP between 2014 and 2015, which represents an improvement of 0.3 points compared to the initial estimate next year. The origin of this performance? An adjustment of the forecast expenditure and revenue, strengthening the fight against fraud and tax optimization. Deeply 2015! Consequently, the forecasts for 2016 and 2017 are “ Consolidated ” estimates the Minister of Finance. For now, Bercy targets a deficit of 3.8% in 2016 and 2.8% in 2017. In Brussels, for the moment, doubt still required.
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