Bercy plans a drop in state spending in 2024, the first since 2015

State spending, excluding interest on debt, should decline in 2024 thanks to the end of energy tariff shields, according to a preparatory budget document released by Bercy on Sunday, the first since 2015, according to the ministry.

The credits granted to the different State missions for 2024 reach 356,000 million euros, 4,800 million euros less than in 2023. According to this document, the progressive end of gas and electricity tariff shields explains this decrease.

Savings on “utility energy”

Spending on the “public energy service” program, which includes energy shields and the exceptional fuel subsidy, went from 21,700 million euros to 7,700 million euros, that is, a saving of 14,000 million, according to the “cost ceilings”. expenditure of the Finance Act 2024” sent to Parliament on Sunday.

The Ministry of Economy also sees its spending ceiling lowered by more than three billion euros with the end of the window of support for companies that consume a lot of energy.

Savings are also possible thanks to the fall in unemployment, with less recourse to subsidized contracts for companies or housing with the suppression of the Pinel system and the zero-rate loan reform announced in June.

The Government has set itself the objective of reducing France’s high indebtedness to 108.3% of Gross Domestic Product in 2027 (compared to 111.6% at the end of 2022), which places it among poor European students, and placing it in the European target of 3% public deficit (4.7% at the end of 2022).

National Education and the Armies are doing well

Among the more affluent ministries, National Education sees its credits increase to 64,200 million euros, that is, 3,900 million euros more, and the provisional ceiling for Defense increases by 3,300 million euros to 47,200 million euros. The increase in army spending will be used for weapons and the revaluation of salaries, according to Bercy.

The missions related to the Ministry of the Interior and Justice are also renewed.

Bercy also ensures that an additional seven billion euros will be dedicated to ecological planning. The “Ecology, development and sustainable mobility” mission has increased by 2,300 million euros and actions are planned for the energy renovation of homes, cleaner mobility or via the renewal of the “green fund” aimed at the communities.