2023-10-29 15:00:33
A worrying imbalance between revenue and expenditure
The current financial situation in the French departments is worrying to say the least. François Sauvadet, president of the French departments association, recently warned of the situation: “ All the lights have turned red “. Expenditures, particularly those related to social issues, are experiencing a real “ explosion ”, while revenues show a clear slowdown.
One of the main culprits? The real estate market crisis. Indeed, with a drop in real estate transactions, transfer taxes for valuable consideration (DMTO), commonly called “notary fees”, now represent less income for the departments. To put it in perspective, according to a survey by Departments of France, DMTO revenues have seen an average drop of “17 to 20%” this year.
Emergency measures for departments in crisis
Faced with this crisis situation, Côte-d’Or, a department chaired by François Sauvadet, has already noted a shortfall of 17 million euros. In addition, he had to face an increase in his expenses of “30 million euros in ten months”, due to the impact of salary increases and the decisions of “Ségur de la santé”.
And the Côte-d’Or is not an isolated case. Around fifteen departments would now be unable to meet their financial obligations. Faced with these figures, Dominique Faure, the Minister for Local Authorities, tried to reassure by indicating that there is a fund dedicated to helping these departments in difficulty, while emphasizing that certain departments are doing well.
Faced with this worrying situation, the Départements de France association intends to draw on the safeguard fund, with a forecast value of 60 million euros for 2023, set up when the property tax was replaced by VAT. François Sauvadet asks the State “ to make the same effort ».
In addition to these financial challenges, departments are also faced with unforeseen expenses, such as the reception of unaccompanied minors (UMAs). The costs associated with their care are estimated at “ at least 1.5 billion euros per year “. The departments are therefore requesting compensation from the State commensurate with these expenses.
1698618210
#financial #crisis #threatens #departments
