The State will enhance its most important allocation to communities by 220 million euros in 2024, pronounces Dominique Faure

The State will enhance its most important allocation to communities by 220 million euros in 2024, Minister Delegate Dominique Faure introduced on Monday in an interview with La Gazette des Communes. The 2024 funds, which have to be introduced to the Council of Ministers on Wednesday, “supplies for a rise of 220 million euros on this general working allocation” (DGF), indicated the Minister for Native Authorities.

Second consecutive enhance

“We’re mobilizing 100 million euros from the agricultural solidarity grant, 90 million euros from the city solidarity grant and 30 million euros from the intercommunality grant,” detailed Ms. Faure. After 13 years of freezing this useful resource paid by the State to municipalities, intermunicipalities and departments, the DGF is rising for the second 12 months in a row. In 2023, the federal government had already elevated it by 320 million euros, already to cope with excessive inflation, unprecedented in France because the Nineteen Eighties. It’s going to thus attain just a little greater than 27 billion euros in 2024.

Regardless of the extra 220 million euros introduced for 2024, sure associations of native elected officers could possibly be disillusioned. In latest weeks, they’ve in reality known as for an indexation of the DGF, the primary allocation out there to them, on the extent of inflation (which reached 4.9% over one 12 months in August, in keeping with INSEE). Their working prices have in reality been elevated by the final enhance of 1.5% promised to civil servants this summer season and the surge in costs, which will increase the price of their purchases.

“Enhance in neighborhood income”

“We take into account that there’s legitimacy in there being indexation to inflation in order to not endure a lack of buying energy, which was the case till 2013”, just lately argued to AFP Franck Claeys, deputy delegate for city France. “We can’t ask the State to totally compensate for inflation. Moreover, inflation (…) additionally generates a rise in neighborhood income,” Ms. Faure replied in her interview on Monday.

The topic of tight negotiations every year between the State and the communities, the DGF is much from being the one monetary useful resource out there to the latter. Along with the 26.6 billion DGF, in 2022 the State returned to communities greater than 80 billion euros in income from nationwide taxes and VAT, in keeping with a latest report from the Courtroom of Auditors. Native taxes, collected instantly by communities, introduced in 78 billion euros in 2022.