Local authorities lost 3,9 billion euros in 2023 according to the Court of Auditors

The departments, whose expenditure is mainly attributed to medico-social action, with for example the payment of Active Solidarity Income (RSA), saw their savings drop by 4,7 billion euros.

They have suffered greatly from the slowdown in the real estate market, with a good part of their revenue coming from transfer taxes for valuable consideration (DMTO) levied on real estate transactions, included in the so-called “notary fees”.

In 2023, the revenues of DMTOs for all communities combined fell by 4,5 billion euros, points out the Court, which once again recommends reforming the financing system of the departments, too exposed to economic cycles while many of their expenses are incompressible.

“Around twenty departments” risk being weakened in 2024 by the continued fall of DMTOs, warns the Court.

The regions saw their gross savings (not taking into account the repayment of their debts) reduce by 0,4 billion euros, their operating expenses having increased under the effect of inflation.

This phenomenon affected all communities, with operating expenses having generally increased by 6,1%, due to the increase in their bills, salary increases granted or even higher interest on their debt.

But their debt increased only slightly, going from 186 billion to 188 billion euros.

Municipalities and intermunicipalities are the only ones to see their savings increase, by 1 and 0,2 billion euros respectively, thanks to the increase in their revenue from property taxes.

Communities are supposed to contribute to the consolidation of public finances, but "the programming law in force does not include a mechanism capable of enabling the achievement of objectives relating to local public finances", challenges the Court.