The public deficit will ultimately be less than 9% this year, forecasts Bruno Le Maire

Bercy had counted in May on a deficit of 9.4% in 2021.

The public deficit will finally be less than 9% of GDP this year thanks to the best expected economic growth, said Thursday the Minister of the Economy Bruno Le Maire, who also announced an increase of 10.8 billion euros in the spending by departments next year.

No jackpot when you exceed 100% of public debt

The government has raised its growth forecast for 2021 to 6% (from 5% previously), and the additional tax revenues that will result will be spent on “contain the public deficit for 2021 to less than 9%, against 9.4% provided for in the amending finance law», Declared the minister during the debate on the orientation of public finances in the National Assembly.

We refuse, with (the Minister of Public Accounts) Olivier Dussopt, to devote all of the additional tax revenues linked to the 6% growth to the increase in public spending», Explained Bruno Le Maire. “There is no jackpot when you exceed 100% of public debt», He insisted. The government aims to reduce this deficit to 5.3% of GDP next year, thanks to a budget “back to normal“, Despite the persistence of the health risk, supported Olivier Dussopt.

An increase in budgets by ministries to be expected

The executive, however, plans an increase in controllable state spending (budget of ministries) of 10.8 billion euros next year, or “increase similar to that of 2021», Announced Bruno Le Maire. “Half of these new expenditures are the result of programming laws, therefore of laws to invest in the sovereign activities of the State.“, The army, justice, police, education or research, he detailed.

The defense budget and that of school education will both increase by 1.7 billion euros next year, according to the budget document detailing the spending limits of the ministries. The research and higher education budget will increase by 900 million euros, and that devoted to security missions, will increase by 800 million euros. That of justice will increase him by 700 million euros.

The spending will also have to support the measures announced by the Head of State

The other half of this increase in spending will be dedicated “to support expenses linked to the crisis: guarantees on the loan guaranteed by the State for example, emergency accommodation, or the extension of the university ticket to 1 euro», Detailed Bruno Le Maire.

The budget will also have to finance the measures announced by Emmanuel Macron on Monday evening, such as the engagement income for young people or the new investment plan, as well as the continuation of the recovery plan.

On the right, the Chairman of the Finance Committee Eric Woerth (LR) denounced “skid“And”renunciation” sure “public spendingAnd the number of officials. In the summer of 2019, the government abandoned the target of reducing 50,000 state officials during the five-year term, and now provides for a “stability of the workforce of the State and its operators“.

SEE ALSO – Marc Landré: “This debt, we’re going to drag it around for a long, long time


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