Local authorities improved their financial situation in 2016, according to the initial figures mentioned on Tuesday by the Secretary of State for the Budget, Christian Eckert, before the finance committee of the National Assembly.
The Secretary of State for the Budget, Christian Eckert, unveiled the first figures on the local authorities’ budgets before the finance committee of the National Assembly.
The operating revenues of municipalities, departments, and regions have significantly exceeded their current expenditures. This surplus even increased by 9.37% last year, after having decreased by 1.2% in 2015, according to the data known as of January 31.
To achieve this result, local authorities controlled their operating expenses. These rose by only 0.77%, which is 1 point less than in 2015.
Personnel expenses increased by 0.9%, which again is a growth of 1 point less than in 2015.
At the same time, operating revenues increased by nearly 2% (compared to +1.7% in 2015), without knowing the portion attributable to tax increases.
But, despite this respite, local authorities once again slashed their investments (-2.29%, after -6.6% in 2015).
Furthermore, Christian Eckert announced that the target for health insurance expenditures, another component of public spending, “should be met” in 2016.
All of this supports the goal of a public deficit (State, Social Security, local authorities) reduced last year to 3.3% of GDP in 2016, according to the minister.
