The government will present its budget for 2024 in the Council of Ministers on Wednesday, covering topics such as ecology, inflation, and savings.

The State’s 2014 budget is being presented this Wednesday, September 27, in the Council of Ministers. As the government aims to make savings, the debates are expected to be lengthy and contentious, especially considering the possibility of invoking Article 49.3.

Des économies

The government plans to make 16 billion euros in savings. 10 billion of them are expected to come from the gradual end of the tariff shield put in place to reduce electricity bills. In addition to this, there will be reductions in aid to businesses, such as the postponement of the disappearance of the CVAE, a production tax on companies. This tax will not be completely eliminated in 2024 (as initially planned) but will now be spread over four years. The taxation of highway concessionaires is also part of the plans, according to La Dépêche.

L’écologie

Le ministre de l’Économie Bruno Le Maire garde l’espoir que la France « devienne la première économie verte à horizon 2040 en Europe ». Pour cela, l’État devrait s’engager à hauteur de 10 milliards d’euros qui iront en faveur de la transition écologique, dont 7 dépensés en 2024, détaille Le Figaro.

The government continues to support the purchase of electric cars through the maintenance of the « ecological bonus », but this should be based on the « environmental score ».

Diminution des « niches brunes »

Ces avantages fiscaux qui encouragent l’utilisation d’énergies fossiles, comme le GNR (Gazole non routier) qui est utilisé par l’agriculture et les travaux publics, devraient disparaître progressivement d’ici 2030. Bercy assure que l’argent économisé ira en totalité « au verdissement de l’économie ».

The government could target highways, airports, and the significant profit margins of refining companies.

L’inflation

The government aims to continue fighting against inflation. To achieve this, the tariff shield will be maintained until the end of 2024, currently, 37% of households’ electricity bills are already funded.

Social benefits, pensions, as well as the increase in the income tax scale should be linked to inflation, according to Le Figaro. The increase in tax brackets by 4.8% in 2024 is intended to offset inflation and not penalize French citizens who have seen their salaries rise.

Le 49.3

The discussions in Parliament are expected to be heated. Especially since the government acknowledges that it will have to resort to Article 49.3 in order to pass the budget in the National Assembly.

As part of the « Bercy dialogues, » Thomas Cazenave, the Minister of Public Accounts, is attempting to find points of consensus by frequently meeting with parliamentarians from all parties. Therefore, the tightening of taxation on furnished tourist accommodations (such as Airbnb) could be included in the budget.