This is Bercy’s response to downwardly revised growth. Bruno Le Maire announced this Sunday 10 billion euros in additional savings for the year 2024, in order to meet the objective of a public deficit at 4.4% of GDP. And this Monday, February 19, it was his Minister Delegate in charge of Public Accounts Thomas Cazenave who gave more details regarding the budget cuts.
“We asked the State to tighten its belt. And we made the choice not to touch the social security budget or not to touch the budget of local authorities,” supported Bruno Le Maire. Thus, half of the savings, or five billion euros, must be found in the operating budget of the ministries.
For example, 700 million euros in savings will come from lower personnel costs, in particular the delay in recruitment, and 750 million from a reduction in State purchases, detailed Thomas Cazenave. He also mentioned a reduction in state office space of nearly 25% by 2030 and a 20% reduction in travel by public officials.
A planing of MaPrimeRénov’
Insisting on a “fair” and “necessary” measure in a difficult context for public finances, Thomas Cazenave also announced the establishment from 2024 of a flat-rate participation of employees in the personal training account (CPF), “which will allow us to generate 200 million euros in savings” out of 2.2 billion in expenses that were planned for this year.
Among the other public policies that Bercy wishes to revise, the minister cited a reduction of one billion euros in the MaPrimeRénov’ energy renovation aid envelope, which will increase by 600 million euros compared to 1.6 billion previously planned, or the revision of the support amounts for apprenticeship contracts (200 million).
Also on the agenda is a reduction of 800 million euros in public development aid and the limitation of the Green Fund to 100 million euros. Finally, Bercy plans a reduction of one billion euros in the budget of state operators, such as France Compétences, Business France, the National Agency for Territorial Cohesion, CNES, etc.
Go below 3% deficit by 2027
The decree to cancel these 10 billion euros of credit must be taken this week. Another decree must specify the modalities for the CPF in April, according to Bercy.
In the medium term, the government aims to get back into the European lead by bringing the public deficit back below 3% in 2027. But in 2023 alone, a source at the Ministry of the Economy explained to AFP that Bercy’s stated objective of reaching a public deficit of 4.9% of gross domestic product (GDP) will be “probably difficult” to maintain.
The government has already warned that efforts will have to continue in 2025, with a review of spending which should result in “at least” 12 billion euros in savings, according to Bruno Le Maire.