The financial situation of the communities “contributed strongly to the increase in the public deficit”, despite its limited participation in the latter, the auditing court analyzes in its 2025 report on local public finances published on Friday.
In 2024, the public deficit was 169.6 billion euros, or 5.8% of GDP against 5.4% in 2023, while communities saw their need for financing from 5 billion in 2023 to 11.4 billion in 2024, or 0.4% of GDP.
But “they firmly contribute to the increase in the need to finance all public administrations in 2024 (State, Social Security and Communities, Editor’s note), while the Public Finance Programming Law for the 1920s to 2027 provided them with that they involve them in their recovery,” they say.
Expenses are increasing more than income
Between 2022 and 2024, the degradation of the balance of the communities expressed as a percentage of GDP thus represents the “half balance” of public spending.
This increase in the need for financing, communities that are not authorized to borrow for their operating expenses, reflects a “increasing scissors effect between the dynamics of their operating and investment expenses” and that of their operational income.
According to the Court, operating expenses increased more (+4.1%) than income (+2.7%) in 2024 and were the expenses of municipalities and intermunicipalities that increased more (+4.8%).
This is explained in particular by a revaluation of the remuneration of public officials, a decision of the State, “an increase in the workforce of contracted workers and officials in all categories of communities”, in particular linked to the new needs of municipal police officers or in the opening of the nurseries, or for the effects of inflation.
A low proportion of GDP
In terms of departments, the increase in expenses is explained by the worsening of precariousness, with an increase in social benefits and the number of beneficiaries.
In the end, the general financial situation of communities remains “healthy”, even if the court points out “growing disparities between communities.”
If the debt of the communities has grown by around 215.4 billion, “it still represents a small proportion of GDP,” 6.6% or 7.4% “in 2024.
On the other hand, “black signals accumulate”: the financial situation of the departments has deteriorated, emphasizing “the need for a general review of their resources.”
In this context, the Court recommends “a financial participation” of communities in the recovery of public finances.
Source: BFM TV
