Public Accounts Minister Olivier Dussopt made the assessment in an interview published today in the journal du Dimanche.
France’s public deficit will finally be “close to 7%” of gross domestic product (GDP) by 2021, according to the Public Accounts Minister Journal du Dimanche, while the government last year was 8.2%.
The minister explained that the improvement was due to “bigger tax revenue than expected”, which was linked to stronger growth than previously estimated, and that the recovery of Social Security accounts was “thanks to the receipt of recovery and contributions to employment”.
In early January, Economy Minister Bruno Le Myre already ruled that the budget deficit for 2021 would be “significantly less than 8% of GDP”. Olivier Dussopt recalled that according to the latest INSEE forecast, growth should be 6.7% in 2021, which was 6.25% as per the government forecast up to September.
The social security deficit will fall from 40 40 billion in 2020 to about 25 25 billion in 2021. We expect almost Rs 33 billion, ”the minister explained. The state’s deficit will rise to 171 billion euros for its share, or “almost 34.5 billion less than our last estimate”, yet Olivier Tussauds welcomed.
“All these movements confirm our deficit forecast of 5% in 2022 and then 3% in 2027,” he added, adding that the increase in interest rates does not call into question the scope of the 5% deficit for this year.