PRESS RELEASE
4 July 2022
PUBLIC FINANCES AND ACCOUNTS
2021 CENTRAL GOVERNMENT BUDGET
Results and Management
The Court of Accounts has published its 2021 Central Government Budget Report,
accompanied by 64 budget performance analyses. The year 2021 was marked by significant
central government interventions, particularly due to the ongoing health crisis and the
ramping up of the recovery plan. On the other hand, Central Government revenues benefited
from a significant improvement in the economic situation compared to 2020. Ultimately, the
Central Government budget deficit remains high in 2021, reflecting significant and equally
large increases in revenue and expenditures. The analysis of the year 2021 highlights several
budgetary risks for the future, including significant carry-over of allocations and the increase
in the interest expenditure.
A deficit that is still very high, a debt that continues to increase
In 2021, the Central Government’s budget deficit is set at
€
170.7bn, slightly lower than in 2020
(
€
178.1bn). It remains at a very high level compared to previous years (
€
92.7bn in 2019). As a
result, in 2021 the debt will increase significantly again:
the Central Government's debt at the
end of 2021 amounts to
€
2,145bn, up by
€
144bn compared to 2020 and
€
322bn compared to
2019.
Revenues benefiting from the economic rebound
General budget revenue rose sharply in 2021 (+
€
38.2bn), driven by a sharp increase in tax
revenue (+
€
39.8bn), despite continued tax cuts (property tax, corporation tax) and the
reduction in production taxes decided as part of the recovery plan. Tax revenues have in fact
experienced a very rapid intrinsic evolution (excluding new measures) (+18.0%), higher than
that of GDP (8.2% in value), i.e., an elasticity (the ratio of the two growth rates) of 2.2, much
higher than the average over a long period of close to 1. This intrinsic evolution was
underestimated in the forecasts of the Initial and Supplementary Budget Acts for 2021: tax
revenues were thus
€
18.2 billion higher than the forecast in the end-of-year Supplementary
Budget Act.
Expenditures still very dynamic in 2021
Central Government general budget expenditures have risen very rapidly in 2021, not only as a
result of emergency and recovery measures. In two years, expenditures have increased by
€
90bn, i.e.,
€
53.6bn in 2020 and
€
37.1bn in 2021.
Apart from the scope effects (+
€
6.9bn), the strong increase in expenditure in 2021 is the result
of three factors: a limited fall in support expenditure in 2020 in response to the health crisis
(
‑
€
5.0bn), the increase in expenditure under the recovery plan (+
€
17.5bn), and the rapid
increase in other expenditure (+17.6bn, i.e. +5.1%). The latter increase can be explained in
particular by the introduction of the inflation allowance (
€
3.3bn), the increase in the cost of the
Military Planning Act (
€
2.7bn), as well as the rise in the cost of interest on the debt (+
€
2.0 bn)
after a period of continuous decline since 2011. This rise in interest costs is linked to the rise in
inflation, which influences the interest costs via inflation-linked bonds.
Deviations from budgetary principles
The Court found several deviations from some basic principles of our budgetary law, such as
the one-year budget rule on expenditure authorisations and the specification of appropriations.
Indeed, since the health crisis, the Government has systematically included in the initial or
supplementary budget acts appropriations that go beyond the foreseeable needs, and carries
over to the following year the appropriations that are not used at the end of the year. The
amounts of appropriations carried over at the end of the year 2020 (
€
36.7bn) and 2021
(
€
23.2bn) are much higher than usually observed. In addition, appropriations voted on under
some budget programmes were used to finance expenditures under other programmes. These
practices weaken the scope of parliamentary authorisation and lead to the voting of
expenditure amounts and balances that differ from the Government's actual forecasts.
Risks for the future
Beyond the strong uncertainties linked to the current geopolitical context and its economic and
budgetary consequences, the 2021 comprehensive audit highlights several significant risks on
the expenditure trajectory for the coming years, particularly with the significant carry-over of
appropriations from 2021 to 2022, and outstanding payments (committed expenditures to be
paid over the next few years) which have increased sharply due to the recovery plan, the Future
Investment Programme (PIA) No. 4 and the Military Programming Law. The increase in inflation
in 2022 will also lead to a further increase in interest expenditures on the debt.
At the end of its analysis, the Court makes four audit recommendations and refers more broadly
to the audit recommendations in the Budget Implementation Analysis Notes.
Read the Report and Budget Performance Analyses
PRESS CONTACTS:
Emmanuel Kessler
Director of Communications
T
+33 (0)1 42 98 55 62
+33 (0)6 62 48 07 81
emmanuel.kessler@ccomptes.fr
Julie Poissier
Head of Press Relations
T
+33 (0)1 42 98 97 43
+33 (0)6 87 36 52 21
julie.poissier@ccomptes.fr
@Courdescomptes
ccomptes
Court of Accounts
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