France/Government to increase its main grant to local authorities by 220 million euros in 2024
As a result, the total operating allowance for local authorities will reach just over 27 billion euros next year.
This was a recurring request from local elected representatives. The State will increase its main grant to local authorities by 220 million euros in 2024, announced Minister Dominique Faure on Monday September 25 in an interview with La Gazette des communes. The 2024 budget, due to be presented to the Council of Ministers on Wednesday, "provides for a 220-million-euro increase in this global operating grant" (DGF), said the Minister Delegate for Local Authorities.
"We are mobilizing 100 million euros from the rural solidarity grant, 90 million euros from the urban solidarity grant and 30 million euros from the inter-municipality grant", Dominique Faure detailed.
An increase for the second year running
After thirteen years of freezing this resource paid by the State to communes, inter-municipalities and départements, the DGF is increasing for the second year running. In 2023, the government had already increased it by 320 million euros, in response to high inflation. By 2024, the total operating grant will have risen to just over 27 billion euros.
Despite the announced increase for 2024, some associations of local councillors may be disappointed. In recent weeks, they have called for the DGF, their main allocation, to be indexed to inflation, which reached 4.9% year-on-year in August, according to INSEE.
In addition to the 26.6 billion euros in DGF, the State will have transferred more than 80 billion euros in revenue from national taxes and VAT to local authorities by 2022, according to a recent report by the Cour des Comptes. Local taxes, levied directly by local authorities, brought in 78 billion euros in 2022.
Source: www.francetvinfo.fr