2020, record year: 120% debt, 65% public spending, 46.3% compulsory levies

THE MACRONOMETER – The new revision of the corrective finance law continues to plague the finances of our country, considers iFRAP. The liberal think-tank, which evaluates the action of the executive every week, gives this financial policy a 4/10.

The 2th confinement decided by the President of the Republic as of October 29 triggered a fourth corrective finance law for 2020 (a record!) in order to further degrade the GDP in the budget forecasts and to vote for emergency measures to help the poor businesses once again under administrative closures (non-essential shops, restaurants, bars, theaters, cinemas, etc.).

The result on public finances was not long in coming. The figures are chilling: -11% growth, inflation now zero, public debt which is skyrocketing from 117.5% for 2020 in September to 119.8% of GDP. A public deficit of -11.3%.

The measures of the emergency plan go from a budgetary cost for 2020 of 64.5 billion euros to 85.5 billion euros The aid paid (solidarity fund) increases by nearly 10.9 billion euros . The extension of partial unemployment benefit schemes has an additional cost of 3.2 billion euros, shared 2/3 by the State, bringing the total support for partial activity to 34 billion euros. euros.

High Council of Public Finances

Under these conditions, public spending will increase further in 2020 to 1,434 billion. They will reach nearly 64.3% of GDP (excluding tax credits) and 65.1% (including tax credits). Revenues, for their part, should hold up well and would only decline by 2.1 billion compared to the forecast for September 2020, (with losses of between -358 and -583 million euros, for compulsory levies at 45, 2% of GDP (excluding tax credits) and 46.3% of GDP (including).

The budget deficit to be financed for 2020 will be 222.9 billion euros. A figure to which must be added the refinancing of the debt matured of 136 billion euros. Note: a significant drop in additional short-term funding (from 82.9 billion anticipated this summer to only 53.3 billion euros). This is explained by an increase in “other cash resources” of around +11.8 billion, mainly the effect of issue premiums net of discounts thanks to the issue of debts on old strains with interest rates. higher interest than today …

The High Council of Public Finances once again underlined the fanciful nature of the level of the structural balance and the absence of a credible and updated trajectory for the return to balance of our public finances and for deleveraging. As long as the Banque de France redeems French debt without limit on the secondary market, the State recovers in dividends more or less what it pays it in interest charges. A cycle of addiction to public spending which should increasingly complicate any normalization of monetary and budgetary policies.


, observatory of government reforms, is a site in partnership with Le Figaro. This is a tool dedicated to the evaluation of Emmanuel Macron’s five-year term: econometric evaluation in relation to his electoral program and the announcements of his government. With Le Macronomètre, the action of the government is rated out of 10 every Wednesday on the occasion of the Council of Ministers and becomes readable at a glance. The Macronometer allows everyone to form an opinion on whether or not the President of the Republic’s promises are kept and on the effectiveness of the government’s reforms.

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