The government will complete its first amending budget published in August with new aid measures.
An “anti-inflation extension”. The government will present its second draft amending budget for 2022 to the Council of Ministers on Wednesday, in order to specifically integrate new aid in the face of rising energy prices.
“This text is the new stage in the fight against the high cost of living that we have been carrying out relentlessly for a year,” said Minister of Public Accounts Gabriel Attal on Tuesday, during a press presentation of the big companies. .
In a context of high inflation, estimated at 6.2% in October over one year according to provisional data from INSEE, the government is integrating, with new aid measures, its first amending budget published in August and then called the “package. purchasing power”.
New energy control and pump rebate
Among these, the payment of a new energy allowance for the more modest, for an amount of 1.5 billion euros, but also the extension of the discount at the pump until November 15, for 440 million euros or an envelope of 275 million of euros to help universities and research institutions cope with the surge in energy costs and another of 200 million euros for the fuel costs of the Ministry of armies.
“With this amending budget law, we are helping the French to keep warm and move, we are allowing our students and researchers to work in good conditions and we are funding the battle for full employment,” assured Gabriel Attal.
“We are financing this ‘anti-inflation extension’ by reducing our deficit. So 2022 is not only the year of fighting the high cost of living, it is also the year of fighting for well-kept accounts,” he added. .
The government estimates that the deficit is expected to reach 4.9% of GDP in 2022, up from 5% in the previous estimate. Overall, the amount of the deficit decreased by € 4.6 billion, thanks to better-than-expected tax receipts, in particular from corporate tax and income tax, as well as a decrease in some expenses.
On the loans guaranteed by the state granted during the health crisis, it will recover, for example, two billion euros on the sums that had been programmed to meet any unpaid debts, thanks to fewer defaults.
The examination in the Assembly scheduled for 7 November
The government, on the other hand, does not change these other macroeconomic forecasts, with GDP (gross domestic product) growing by 2.7% and inflation at 5.4%, not counting tobacco prices (5.3% if this is taken into account ). When the first amending budget was published, the Court of Auditors and the Higher Council of Public Finance had expressed doubts about the executive’s forecasts, considering that there were still many uncertainties about the country’s economic situation.
A new opinion from the Higher Public Finance Council on this second amending budget is expected on Wednesday.
Gabriel Attal is also expected to speak in the middle of the day before the Finance Committee of the National Assembly, then he will be heard on Thursday, with Economy Minister Bruno Le Maire, in the Senate.
The examination of the text will begin on November 7 at the National Assembly, then on November 14 in the Senate. It comes as a parliamentary battle that has been going on for several days in the National Assembly around the vote on the 2023 budget for the state and social security.
Prime Minister Elisabeth Borne has already drawn the constitutional weapon of 49.3 three times, which allows the approval of a text without a vote, assuming the responsibility of the government. The whole project is considered adopted at first reading and will pass in committee in the Senate on Wednesday.