An “unambitious” trajectory for the Superior Council of Public Finances
The Superior Council of Public Finances (HCFP) considered the path outlined by the Government to reduce the public deficit between now and 2027 “not very ambitious”, in an opinion issued this Sunday on the eve of the presentation of the 2023 budget project.
The trajectory by which the Government intends to reduce this deficit from 5% of GDP to 2.9% during the five-year period is also considered “particularly fragile” by the HCFP, which considers its assumptions “on economic growth, on spending control and on the increase in mandatory fees”.
A downwardly revised growth forecast
The international context forced the government to review its growth forecast for 2023 last week during the presentation of the macroeconomic framework for the 2023 finance bill.
As of now, Bercy expects 1% growth, up from 1.4% previously. The inflation forecast for 2022 has been revised upwards, to 5.3%, before 4.2% next year.
Finally, the objectives for the restoration of public finances are the following: a deficit of 5% in 2023 and less than 3% in 2027. The public debt must begin to fall from 2026 while the rise in interest rates (2 .5% to 10 years in 2023) is likely to cause the debt load to skyrocket in the coming years.
D-Day for the 2023 budget
Bruno Le Maire and Gabriel Attal present their 2023 budget for France to the Council of Ministers, a budget to “protect the French” against inflation and the coming recession, explains the executive. For more information, click here.
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Source: BFM TV
