7 end 2007 one of the highest in the OECD

First of the legislature to decline at the same time the four elements of the magic square of public finances (taxes, spending, deficit and debt), the draft budget for 2007 may inspire an only regret that the majority: that of not having done earlier. Presented yesterday at the Council of Ministers, this last Bill of Finance of the quinquennium has all the appearances of "virtue" that open it its main author, the Minister of economy, finance and industry, Thierry Breton.

PLF 2007 provides for a deficit of Auditors of the State of EUR 41.6 billion, the lowest of the five voted by the current majority. It is significantly less, inter alia, that the deficit initially projected for 2006 (46.9 billion) and even better than finally expected end of the year (EUR 42.7 billion). For the first time since 2002, the overall public deficit (2.5 of GDP) expected even to stabilize the public debt. From this point of view, the 2007 budget is distinguished from the 2006 budget, which degraded, instead of cleaning up, the finances of the State.

5 billion surplus for tax

This result is obtained, of course, in a better economic situation, which generates far greater than expected tax revenues. Surplus tax is assessed at EUR 5 billion for the year 2006. For next year, the Government discount already 13.4 billion revenues more despite the decline in the income tax. To add timely inch strokes, as the 2 billion euros of additional dividends expected from public companies.

As in our major neighbours, the return of European growth facilitates the remediation of public accounts. But it must also largely to the efforts of rigor for several years by the Government and accented in the PLF 2007. For the first time, state appropriations fall in volume (from 1 point to inflation) and does increase, in absolute value, 0.8 at constant perimeter. With Justice, which suffered much this year, almost all of the departments will have to tighten their belts. And the Minister delegate for Budget, Jean-François Copé, may ensure that its state modernisation audits facilitate things by pointing the waste, the Government fears the social climate in the sensitive ministries, such as Education, where 3,090 posts will be removed the next year.

Few new measures

Unimportance control of State spending to the extent that more commitments are now treated in tax credits and are more recorded in column of expenditure. But the trend is receding from the public expenditure. It was, moreover, condition to finance the substantial tax cuts in 2007, for the most part passed in 2006. Cost net EUR 4.3 billion to the State budget, the decrease in the number of slices and the rate of the income tax and the establishment of a "tax shield" complete the policy of lower taxes claimed since 2002, in the service of the global competitiveness of the country.

PLF 2007 itself contains little new measures, and of low importance, but this does not preclude the Minister for the economy to see a budget of "support for purchasing power." This is especially true for the happy, who see now the State, through the premium for the job, substitute for companies to pay them a simili 13th month. Overall, Bercy figure to EUR 23 billion tax relief on the legislature. The paradox is that, over the same period, increasing performance of taxes will be not allowed to lower the rate of compulsory: 43.1 of national wealth end 2002, 43.7 end 2007, one of the highest in the OECD. The Jospin Government had same misadventure in 1999. But a majority elected on a presidential promise to lower the tax burden of a third party, to simply note that a tax home in ten has only seen its reduced 30 income tax.

Whatever its merits, the 2007 budget is not enough, finally, to redress the bar. Public spending and debt decelerate but still higher than they were at the beginning of the quinquennium. Remain the satisfaction, as says the Gilles Carrez, UMP rapporteur for the budget to the National Assembly, to "healthy" accounts Or at least in the process of remediation.