An “anti-inflationary extension”. The Government will present its second amending budget project for 2022 to the Council of Ministers on Wednesday, in order to integrate, in particular, new aid in the face of the increase in energy prices.
In a context of high inflation, estimated at 6.2% in October one year ahead according to provisional data from INSEE, the Government complements its first amending budget published in August and later called “purchasing power package” with new aid measures.
New energy check and rebate at the pump
Among them, the payment of a new energy check for the most modest, for an amount of 1,500 million euros, but also the extension of the bonus at the pump until November 15, for 440 million euros or a provision of 275 million euros to help universities and research organizations cope with the extremely high energy costs, and another 200 million euros for the fuel costs of the Army Ministry.
less deficit
The government estimates that the deficit should reach 4.9% of GDP in 2022, down from 5% in its previous estimate. In total, the amount of the deficit was reduced by 4,600 million euros, thanks to better-than-expected tax collection, in particular from Corporate Income Tax and Personal Income Tax, as well as the reduction of certain expenses.
On the loans guaranteed by the State granted during the health crisis, it will recover, for example, two billion euros of the amounts it had planned to face possible defaults, thanks to lower delinquencies.
The examination in the Assembly scheduled for November 7
In contrast, the Government does not change these other macroeconomic forecasts, with GDP (gross domestic product) growth of 2.7% and inflation of 5.4%, not counting tobacco prices (5.3% taking them into account). ). When the first amending budget was published, the Court of Accounts and the Superior Council of Public Finance had expressed doubts about the Executive’s forecasts, considering that there were still many uncertainties about the country’s economic situation.
A new opinion from the Superior Council of Public Finances on this second amending budget is expected on Wednesday.
Gabriel Attal must also speak at noon before the Finance Committee of the National Assembly, then he will be heard on Thursday, with the Minister of Economy, Bruno Le Maire, in the Senate.
The examination of the text will begin in the National Assembly on November 7, then on November 14 in the Senate. It occurs in the midst of a parliamentary battle for several days in the National Assembly around the vote on the 2023 budget of the State and Social Security.
Prime Minister Elisabeth Borne has already drawn the constitutional weapon of 49.3 three times, which allows a text to be approved without a vote, compromising the responsibility of the government. The entire bill is considered approved at first reading and will go to committee in the Senate on Wednesday.
Source: BFM TV
