This Monday, the executive presents its budget for 2023. In a context of rising energy prices, it is marked by spending to the detriment of public finances, with a deficit forecast of 5% of GDP in 2023. Point by period, this is what it contains.
The French Government presented this Monday that, in a highly inflationary context marked by the rise in energy prices, it privileges spending to the detriment of the restoration of public finances with a deficit forecast maintained at 5% of GDP for the next year. Estimated at €431.9 billion, it includes a budget deficit of €155.1 billion.
Presented to the Council of Ministers before a dangerous examination in Parliament where the executive only has a relative majority, the first budget bill for Emmanuel Macron’s second term is based on a growth forecast of 1% for 2023, when Banque de France Governor François Villeroy de Galhau warned of a slowdown or even the risk of a limited recession. The OECD predicts in 2023.
The 2023 budget “is still leaning too much on the side of fossil fuels” because the government has chosen to “protect” the French from the energy crisis, Economy Minister Bruno Le Maire acknowledged on Monday. “There are a lot of expenses for the gas bill,” he explained, adding that this “can only strengthen our determination to accelerate the climate transition.”
According to information from World, 45,000 million euros will be dedicated to maintaining a “tariff shield”. Less generous than that of 2022, this budget must contain the price increases for electricity and gas at 15%. 3,000 million euros will be allocated to companies to support them in the energy crisis. The indexation to inflation of the income tax scale amounts to 6,200 million.
Increase in teachers’ salaries
In the 2023 budget, an allocation of 935 million euros is foreseen to finance an “unprecedented” increase, with an “average 10% base” and increases to pay for additional tasks, according to Bercy’s budget documents. Also, an envelope […]