Wednesday, February 8, 2017

The Court of auditors considers that the government will struggle to reduce the deficit to 2.7% – Europe1

The objective of public deficit reduction, the government intends to reduce it to 2.7% of gross domestic product (GDP) in 2017, after 3.3 per cent in the last year, will be “very difficult”, believes the Court of auditors in its annual public report, published on Wednesday.

revenue assumptions “optimistic”. The anticipation of government is based “on assumptions of revenue optimistic” and “savings that will not reach the amounts expected,” said the court financial independent, which calls for “intensifying efforts to control spending” to clean up the public accounts.

In their traditional annual balance sheet, in charge of sifting through the management of public resources, the judiciary financial draw a table with critical assumptions in the project of finance law (PLF) in 2017, particularly on the spending plan.

Risk of acceleration of public spending. The planned path by Bercy contains “the various factors of under-estimation, which pose the risk of an acceleration of net total public expenditures”, especially for unemployment insurance and health insurance, highlights the Court of auditors.

The unemployment payments are expected to decline 3.9% this year, thanks to falling unemployment, but also due to the renegotiation of the convention, Unédic, engaged in early 2016 between unions and employers, and on which Bercy account to save 1.6 billion euros.

however, the negotiations are at a standstill “, and it seems unlikely they will resume before the summer of 2017, or that the unilateral actions of the government come before this date,” says the Court, for which the improvement in the labour market could be less than expected.

The health insurance will be its objectives ? The institution chaired by Didier Migaud was also concerned by the “significant risk of tolerance” at the level of health insurance expenditure, the government’s anticipated savings are higher than in 2016, but with measures of a similar nature, such as the development of ambulatory surgery.

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