DECRYPTION – Unlike municipalities, they benefit from the dynamism of VAT receipts.
Inflation will not have the same impact on the finances of all local authorities. Those most exposed to VAT, the regions and the departments, will benefit from a surge in their revenues, when on the side of the municipalities, it is above all the expenses that are expected to rise. Since the reforms of 2021 – abolition of the housing tax on main residences and reduction of production taxes – more than half of the operating income of the regions, and more than 20% of those of the departments, come from VAT. .
In this period of price waltz, which mechanically inflates the revenue from this consumption tax, the budgets of these communities will therefore be able to count on a generous balance. According to a report on local public finances from the Court of Auditors, revenue from VAT would increase this year by 1.2 billion for the regions and departments, by 595 million euros for intermunicipalities and by…
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