Michel Sapin Defended the “Seriousness” of its Budget in 2017

Finance General News
Michel Sapion defended the presentation of the budget for 2017

Michel Sapin on Wednesday defended the “serious” and “coherence” of its draft budget for 2017, rejecting the criticism by the Public Finance High Council (HCFP), which considers “unlikely” for the deficit reduction planned by the government .

“This budget is serious” , assured the Minister of Economy and Finance during the press presentation of the Finance Bill (PLF) in 2017, confirming the objective of returning the public deficit to 2.7 % of gross domestic product. “This commitment, we will hold” , he added.

The High Council of Public Finance (HCFP), an independent body to assess the credibility of the budget, has expressed concern in a notice published Tuesday of scenario used by Bercy, which “tends to deviate from the principle of prudence” .

“This commitment, we will hold”

The High Council is particularly concerned about the growth assumption by the government, to 1.5% of gross domestic product (GDP), described as “optimistic” . He also considers it “unlikely”  the target of 2.7% public deficit and even  “uncertain”  his return under the fateful 3%.

“This commitment, we will hold” assured Mr. Tree, claiming to be  “strengthened”  in its forecasts by  “results”  achieved in 2015, when the public deficit reached 3.5% of GDP while it was expected to 4.3%.

At the time, the target set by the government was considered  “at risk of not being achieved” by HCFP. Or  “what was out of reach was achieved” , stressed the minister, promising that what is deemed  ‘unlikely today will be shown tomorrow “ .

Regarding growth, the minister defended the 1.5% target, denying any “reckless” . “If we have chosen to maintain this hypothesis is that we decided not to react hastily to the events of the been the consequences are particularly uncertain “ , he said, citing in particular the case of the British Brexit yes.

Michel Sapin attacks the right

“This serious effort management of public finances will continue because it is the condition for the credibility of the voice of France and the guarantee of our sovereignty”, Assured the minister criticizing the tax cuts promised by the candidates for the primary right, in case of victory in the 2017 presidential election.

“Those who come to the presidential election, or the election prior to the primary, promising immediate tax cuts and postponing the control of public expenditure to tomorrow is, I say, irresponsible”, he concluded.


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