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The government announces 10.2 billion additional public spending in 2022 – franceinfo

Byeditorial

Oct 22, 2021

The government detailed on Friday the new balances of its draft budget for 2022.

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The government detailed on Friday, October 22 the new balances of its draft budget for 2022. It provides for 10.2 billion euros in additional spending, in particular to support the purchasing power of households, financed in particular through better revenue tax.

The measures taken to compensate for the rise in energy prices will cost 6.2 billion euros to public finances, detailed the Minister of the Economy Bruno Le Maire. THE’“inflation compensation”, announced Thursday evening by Prime Minister Jean Castex will represent an expenditure of 2.3 billion euros next year, after 1.5 billion euros spent in December 2021.

The government has also revised upwards to 5.9 billion euros, against 5 billion previously, the cost of capping the future increase in the electricity tariff. In addition, the State will compensate the gas companies penalized by the blocking of gas prices up to the end of 2022 up to the end of 2022.

These measures are justified by the economic recovery, better than announced. Part of this expenditure will be financed by an increase in tax revenue expected in 2022 (+5.2 billion), and in 2021 (+4.7 billion). Better revenues which also allow the government to lower its deficit forecast for 2021 to 8.1% (against 8.4%), and to contain that for 2022 to 5% (against 4.8% included in the draft budget). As for the public debt, it will be “reduced to below 114%”, said Bruno Le Maire.

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