Informations Rapides · 27 March 2025 · n° 81

In 2024, the public deficit reached 5.8 % of GDP, the public debt 113.0 % of GDP General government national accounts - first results - year 2024

The general government deficit for 2024 stands at €169.6bn, accounting for 5.8% of gross domestic product (GDP), after 5.4% in 2023 and 4.7% in 2022. Revenues accelerated in 2024, rising by 3.1% after +2.2% in 2023. The compulsory tax rate kept falling at 42.8% of GDP after 43.2% in 2023. Expenditure accelerated also slightly, and rose in current price by 3.9% after +3.7% in 2023. As a proportion of GDP, it increased, and reached 57.1% of GDP after 56.9% in 2023 and 58.4% in 2022. General government debt in the Maastricht sense reached 113.0% of GDP at the end of 2024, after 109.8% at the end of 2023.

In 2024, public administration expenses increased by 3.9% after +3.7% in 2023 and +3.9% in 2022. This growth was higher than the 3.5% increase in GDP (in current prices) in 2024 (of which +1.1% in volume and +2.3% in price).

Operating expenditure slowed: +3.8% (or +€19.8bn) after +6.5% in 2023. Intermediate consumption slowed down sharply (+2.2% after +11.0%), while inflation was steadily declining. Remuneration kept its dynamics pace (+4.6% as in 2023), driven by various general reevaluation of wages led by inflation, by sector-specific bonuses, and also by numbers of jobs slightly more dynamics than the previous years.

Social benefits, contributing for 60% of the increase in public administration expenses, kept accelerating and rose by €39.1bn in 2024, or +5.5% after +3.3% in 2023. This increase was mainly driven by the indexation of benefits to the strong inflation in 2023. Retirement expenses, which constitute the main component of social benefits, accelerated again (+6.9% in 2024, or +€24.8bn, after +5.0% in 2023). notably due to the 5.3% increase in basic pensions on 1st January 2024. Several welfare benefits and allowances (active solidarity income RSA, benefits for family and disability benefits) have been updated on 1st April 2024. Unemployment expenses increased too (+€2.0bn) due to the increases in the number of compensated job seekers and in the average allowance following the rise in wages.

Health benefits increased sharply: reimbursements for professional fees and drugs (medical consultations, medicines, etc.) were up by 4.3% (or +€5.0bn), daily allowances by 6.5 % (+€1.3bn) and incapacity and disability benefits by 5.4% (+€0.7bn).

Subsidies and other transfers fell for the second year: -5.8% in 2024 (or -€11.9bn), after -1.3% in 2023. Expenses to support businesses and households set up to soften the rise in energy prices in 2022 et 2023 fell, with the decreases in the electricity tariff shield (-€14.1bn) and in the gas tariff shield (-€1.5bn), and in energy bill payments to businesses (-€1.2bn). These falls were partially offset by an increase in subsidies for renewal energy producers (+€3.3 bn). Expenses for associations for disable people increased (+€0.8bn), as well as transfers to associations for child welfare (+€0.5bn). Moreover, local administrations increased their aids for investments in transports (+€1.0bn).

Interest expenses on debt rebounded in 2025 (+14,6% after -4.0% in 2023). Rising by €7.4bn, they amounted to 2.0% of GDP. This increase was mainly on the government's balance sheet (+€5.2bn), and more specifically based on non-inflation-linked bonds; the interest expenses on inflation-linked bonds kept declining in 2024.

The investments of public administrations slowed down (+5.3% after a +8.6%). It remained strong in local authorities (+7.6% after a +11.1% in 2023), while it slow downed sharply in social security funds (+1.7% in 2024 after a +19.2% in 2023).

Overall, public administrations expenses rose by €62.8bn in 2024. Excluding interest charges on debt and excluding withdrawals of specific energy shield schemes, they would have risen by €71.2bn.

In 2024, general government revenues accelerated after a 2023 year hampered by slowing economic activity. Overall, revenues increased by 3.1%, slower than GDP in current price (+3.5%), for the second consecutive year.

Taxes (before deduction of tax credits) increased slightly with an increase of 2.0% (+€16.1bn) after +0.6% in 2023.

VAT revenues were almost stable in 2024 (+0.1%, or +€0,3bn, after +3.4%), because of weak momentum in taxable consumption.

Other taxes on product bounced back (+5,2% or +€5.8bn), after a decline in 2023 (-6.1%); excise duties on electricity and gas accounted for most of this increase (+€4.3bn and +€1.4bn, respectively).

Taxes on labour slowed down slightly, but remained dynamic: +5,1% (or +€2.8bn) after +5.8%.

Other taxes on production edged down (-2.5%, or -€1.8bn, after +3.0% in 2023) with a decline in levies on the earnings of electricity producers (-€3.6bn), partially offset by newly-dynamic land tax revenues (-€1.8bn).

Current taxes on income and wealth accelerated, after a slight increase in 2023: +2.5% in 2024 (+€9.0bn) after +0.2%. Corporate income tax barely rebounded at +0,8% (+€0.5bn), after -13.6% in 2023. Personal income tax fell back slightly (-0.7%, or -€0.7bn, after +0.9% in 2023). However, CSG/CRDS, although decelerating (+3.9%, or +€6.0bn, after +4.5% in 2023), were quite vigorous, more than payroll.

Actual social contributions slowed slightly at +4.3% (+€17.6bn) after +4.5% in 2023. The change is greater than payroll; actually, the decompression of the wage scale, after the strong rise in the minimal wage (SMIC) during the previous years, led to a reduction in the base for general tax relief that decrease thus in 2024.

Property income slowed down firmly but remained dynamic (+9.6%, or +€1.9bn, after +21.3% in 2023).

Finally, production and sell revenues kept increasing: +4.5%, or +€5.3bn, after +5.2% in 2023.

The State deficit increased by €0.4bn in 2024 standing at €152.3bn. The revenues increase (+0.7%) was penalized by the weak variation of the main taxes (personal income tax, business income tax, and VAT). Expenditures (+0.6%) were slowed by the end of the aids to support businesses and households facing high energy prices, but stimulated by the increase in wage and the rise in the debt interest expense.

Other central government bodies had a stable deficit of €1.8bn in 2024.

The deficit of local public administrations increased by €7.2bn standing at €16.7bn. Revenues were nearly half as dynamic as in 2023 (+2.2% in 2024, or +€6.7bn, after +4.2%). Specifically, real estate transaction registration fees allocated to municipalities and departments kept declining, due to a decrease of real estate transactions. Expenditures, even slowing down (+4.4% after + 7.0%), were buoyant, notably investment ones.

The surplus of social security funds decreased by €1.3bn, after €11.5bn in 2023. This surplus reflects in particular the positive balance of Cades (+€15.6bn). Revenues slowed down (+4.0% in 2024 after +4.6%), due notably to the CSG and CRDS deceleration. They were less dynamic than expenditures (+5.5% in 2024, or +€30.1bn, after +4.2%) whose increase were notably powered by increases in social benefits following the high inflation in 2023.

The contribution of social security funds increased too (+€21.7bn). Cades reduced its debt (-€6.4bn), while the debt of Urssaf Caisse Nationale (formerly ACOSS) increased (+€25.5bn). Overall, the outstanding debt in bonds increased by €19.4bn and the loans by €2.3bn.

In contrast, the debt of other central government bodies decreased (-€3.2bn), in particular because of SNCF Réseau reducing its debt in securities (-€4.5bn) while Action Logement Services issued bonds for €0.5bn. In total, long-term securities decreased by €3.9bn and short-term loans increased by €1.1bn.