Budget 2018 : the call circulars sent to all departments

While Emmanuel Macron was held on Wednesday 9 August, the last Council of ministers before the summer, the prime minister has just sent “the letters caps” budget 2018 to all departments. Objective : to determine the amounts and the number of staff each can benefit the next year.
The letters framing the budget for 2018 are buckled at Matignon. While the last Council of ministers held on Wednesday 9 August, before the summer recess, the prime minister assured early in the week that the letters “caps”, have been sent to all departments on Monday, 7 August. The objective of these documents on which the Prime minister Edouard Philippe are to determine the amounts and maximum staffing which will benefit the ministries in 2018, said to his entourage with the AFP.


On the merits, the prime minister has refused to detail the content of these letters, “which are not intended to be made public”, referring to the priorities set by the Prime minister in an interview on 4 August 2017 at the newspaper The Parisien – today in France.


In this interview, the head of the Government had referred to the “guidelines ambitious” in favour “of the armed forces, the ministry of national Education, higher Education, Ecology, and Justice”, without, however, give precise figures.


The housing in the viewfinder of Matignon


As for the prime targets for 20 billion euros in savings targeted by the executive for next year, Edouard Philippe had mentioned “public policies that do not provide answers to the challenges”.


The Prime minister had cited “the politics of accommodation: € 40 billion per year for results that everyone agrees to say that they are unsatisfactory”.
Finally, the Prime minister had warned in the same newspaper, last August 4, that “the budget for 2018 will make choices, it will be clear priorities for the country’s transformation.”


Before the Executive seeks cuts in compulsory levies “close to 11 billion euros” in the coming year, including by reforming the tax on wealth (ISF) and the property tax, as well as reductions of expenses in exchange for an increase of the CSG.


The head of the Government has repeated on August 9, 2017 to want to “first, cut taxes”


In spite of everything, the budget for 2018 will be challenging to complete. Interviewed on RTLon Wednesday August 9, 2017, the Prime minister has confirmed that the next budget will revolve around a reduction of taxation and of the “economy measures”, in order to reach a public deficit of 2.7% against the 3 % target in 2017. The assumption of growth would be expected to be around 1.7 %.


“We knew that the financial situation of France was not good, even if it is even worse than I feared”, said the Head of Government. He repeated wanting to “cut taxes first,” even if cost-saving measures are also planned in the framework of the budget 2018.
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Among the tax cuts, the reform of the housing tax represents 3 billion euros, the reform of the ISF, 3 billion euros and that of the withholding of income from savings “around 30%” € 1.5 billion, had explained Edouard Philippe, in an interview with the newspaper Les Echos, July 11, 2017.


For the whole of the quinquennium, the Executive aims at a reduction of 20 billion euros in taxes, of which $ 11 billion focused on 2018, as well as a gel (excluding inflation) in public spending, to “at least 20 billion euros of savings in 2018”.

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