The deficit promises to be less catastrophic than expected

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The deficit promises to be less catastrophic than expected







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Following the increase in growth forecasts, the Monitoring Committee expects, in a provisional estimate, a deficit of 24 billion euros in 2021, reports L’Echo on Wednesday.

The country’s fiscal situation, while not glowing, could be a little less dire than expected. According to this new estimate, the deficit for 2020 would be 33.4 billion euros, which represents 7.6% of GDP. For 2021, the Monitoring Committee expects a deficit of 24 billion euros, or 5% of GDP.

In its report last July, the Monitoring Committee advanced a deficit of 40.2 billion euros in 2020 and 26.2 billion in 2021. Even if this improvement is to be welcomed, these are abysmal amounts, which we had not seen since the 80s. The improvement is to be blamed on less bad growth than planned. It has been revised upwards by the Planning Bureau, which now forecasts negative growth of 7.4% in 2020, followed by a rebound of 6.5% in 2021.

“This is a first provisional report, still incomplete and incomplete. Certain revenues have not yet been able to be reestimated, insists on the office of Budget Minister David Clarinval (MR). These figures will indeed be refined in a full report whose publication is announced for early October. Meanwhile, the provisional document was sent last Friday to the two preformers to help them finalize their work. In any case, the next government will have to deal with a very poor budgetary situation.

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