The current quinquennium will therefore end on a note judged to be positive by Bercy on the control of public finances. It will be difficult to blame the quinquennium Holland not to have reduced the deficits. First, the deficit of the State budget has been reduced by 2016 one billion € 68,98 billion euros. The performance budget in 2016 are even better of 3.3 billion euros that was initially planned, announced the Finance minister Michel Sapin during a press conference on Tuesday.
“ A billion, this is not nothing, knowing that the budget of the State bears virtually all of the tax cuts for households and lower costs for businesses ” , he added. In a press release, Bercy adds that it is the deficit of the State”, the lowest since 2008 “. In 2010, the budget deficit had even reached 148,8 billion euros, a period when the State was forced to rescue the entire economy was in big trouble after the financial crisis of late 2008. Of the rest, in 2012, the budget deficit was $ 87.1 billion euros. It has therefore been strongly reduced since then.
Decline in State spending
Bercy also welcomed the drop in State spending of $ 6.3 billion euros between 2012 and 2016, to 294,8 billion euros. The government likes to emphasize the control of expenditure during the quinquennium. It is, thus silencing the critics of the left who think it is ” lax ” in its management of public expenditure. The Court of auditors and the parliamentary opposition were in particular shown to be skeptical about the government’s ability to maintain a budget in line with european requirements. The right was even blasted by the vote of the chairman (LR) of the finance commission of the national Assembly, Gilles Carrez, the budget for 2017 : “With all these additional expenses, more tax cuts, we risk having accounts very degraded “, was worried about it. Response this Tuesday the secretary of State for the Budget Christian Eckert : “to Say that the spending and the State deficit to explode, as is sometimes said of the opposition, th is is garbage “.
Absorption decreases expenses
in The end, the State will, therefore, have absorbed large drops in expenses to the businesses 40 billion euros foreseen in the pact of responsibility. Thus, as announced in 2016, and in the eyes of the masters confirmed of the expenses of the State, the deficit of all public administrations is expected to represent 3.3 percent of GDP in 2016, even if to be certain, it will have to wait for the aggregation of accounts of social security organisations and local authorities. But Michel Sapin, has confirmed this Tuesday that the social security as the local authority would not be far from equilibrium in 2016. The goal for 2017 is to reduce the public deficit to 2.7% of GDP, below, therefore, the bar of 3 % recorded in the budgetary treaties of the european. As a reminder, the public deficit was 4.8 % of GDP in 2012 and 5.3% in 2011. However, in order to achieve its ends, beyond the decline in State expenditure, the government will have forced other jurisdictions to impose an austerit y cure that has not been without consequences, particularly for the local communities.
Decline of public investment in local
The drastic fall in allocations from the State to communities of 11.5 billion euros over the period 2014-2017 will be, in fact adversely affected their ability to invest. And sectors as those of building and public works, are highly dependent on public investment and local providers of many jobs, have been in trouble during this period. Indeed, one of the economic topics hot in this period of electoral campaigning is the revival of public investment, particularly in the energy renovation and the infrastructure, once one of the largest sources of competitiveness and attractiveness of France. But since the financial crisis, it is clear that the maintenance and renewal of infrastructure that the French have been particularly neglected.
That is why many economists call for differentiating “good” from ” bad ” debt in this period nominal interest rates are very low. To alter the european fiscal rules, to give themselves to the margins of maneuver in order to invest more in some key areas. But if the budget rules do not change, Michel Sapin, who has given his support to Manuel Valls to the primary of the left, warned that : “I see absolutely no what would be the point of putting themselves in breach of the european rules “. According to him, “ the interest of the French ” is ” to have a deficit reduction path “. Not sure that all the candidates, notably on the left) are on the same political line that the minister of Finance…