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The following article was published in our article directory on October 19, 2010.
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France next year's budget plan income and reduce expenditure

Article Category: Business

Author Name: xia zihui

French Finance, Budget Minister Francois Juan Pakistan Joint Committee in 2011 will be the French Minister of Budget Bill. The draft 2011 budget the central objective of reducing the budget deficit, in many fields to explore sources of income, to cancel part of the tax breaks and reductions in government spending, and strive to bring the fiscal deficit down to 6% of GDP. If the draft budget to be successful enough to implement in 2011 the French government could be about 150 billion euros in 2010 the budget deficit to more than 91 billion -920 billion euros.

French fiscal 2011 budget will be around 285 billion euros. Which used to repay the loan amount 450 million, will become France's first major items of expenditure in excess of the national education funding.

France, in January this year, other EU partners had promised the end of 2011 the current account deficit of around 8% of GDP to 6%; the end of 2012 to 4.6%; 2013 to 3%.

French budget deficit is one of the major government funding for their huge expenses. The draft 2011 budget the Ministry of efforts to reduce the large expenditure, in order to save 45 billion euros. According to reports, Prime Minister's Office has begun to major provisions of the expenditure ceiling for the Department to determine the amount of the expenditure must not be exceeded. Only the Ministry of Defense and higher education research has not received the mandatory requirements. Not long ago, French President Nicolas Sarkozy in a letter to Prime Minister Francois Fillon said: "Government spending has to be greatly reduced." In addition, the government will also strive to reduce the daily administrative overhead, two retired civil servants continue to implement only the replacement of a policy. 2011 salaries of civil servants will no longer enhanced.

In addition to the major department and government savings, the draft budget also seeks to reduce the citizens of the existing government incentives and subsidies, from the various throttling. To this end, the draft budget a number of new measures. For example: in 2011 the Government will abolish mortgage interest tax net amount of tax breaks and replace them with new housing subsidies policy, the core is to give citizens the first interest-free loans to buy a house. 2011 will abolish the family hired workers to pay 15 percent reduction in the pension fund's policy. 2011 the year to cancel the wedding or divorce tax provisions separately from the original three into one or two tax bills, also a corresponding increase in tax rates and the amount of solar energy investment tax credit will also be greatly reduced.

The draft budget for French companies, especially banking, telecommunications, pharmaceutical and other companies with huge profits to raise taxes or reduce benefits. Such as communications, including mobile communications, network, TV packaged products will all increase the VAT to 19.6%. Government pharmaceutical amounts collecting social assessment will be raised, some of the risk of the investment bank will also develop the appropriate taxes.

In the draft budget does not involve massive tax increase on the national measures. Residents do not want to raise taxes the French government, because tax increases will affect the consumer, thereby affecting economic growth in France, especially in the current economic growth in France are still many negative factors, economic growth remains stable.

2011 draft budget, such as through the implementation of the change to a greater extent should the current economic status of the French, the French out of the economic dilemma. French Economy Minister Christine Lagarde in France after a French Europe in 2011, said relatively optimistic economic outlook. She hoped that French economic growth in 2011 could reach 2%, the unemployed population from 10% in March this year, back to 9%.

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