Presentation of the finance bill for 2025 and the financing bill for Social Security 2025
Presented to the Council of Ministers this Thursday, October 10, 2024 by Antoine Armand, Minister of the Economy, Finance and Industry, and by Laurent Saint Martin, Minister to the Prime Minister, in charge of the Budget and Public Accounts, the project of the 2025 finance law presents the Government’s tax and budgetary choices for the year 2025.
PLF, PLSS, what is it for?
The finance bill proposes all state revenue and expenditure for the following year. It thus determines the budget, that is to say the nature, the amount and the allocation of resources and expenses according to a determined economic and financial balance.
The Social Security financing bill aims to control Social Security spending based on forecasts of State revenue.
Budget 2025: findings and objectives
An observation: without recovery efforts, the public deficit could reach around 7% of Gross Domestic Product (GDP) in December 2025. In order to remedy this, the Government is proposing a series of actions to reduce the deficit to 5% of GDP by the end of 2025.
To achieve this, budgetary control measures of 60.6 billion euros are proposed in the 2025 finance bill, with details:
41.3 billion euros in reduction of public spending including 21.5 billion for the State, 14.8 billion for Social Security and 5 billion for local authorities.
19.3 billion euros in increased revenue via exceptional, temporary and targeted tax contributions.
What are the next steps of the PLF and PLFSS 2025?
After the adoption of the finance bill and the social security financing bill in the Council of Ministers, the texts are discussed, amended and voted on by Parliament between October and December.
On October 21, the examination of the 2025 finance bill by the National Assembly will begin. From October 21 to 25, deputies will discuss the first part of the PLF, devoted to revenue, before a solemn vote on October 29.
On November 5, 2024, the examination of the second part of the PLF, dedicated to expenditure, will begin.
On November 19, 2024, the National Assembly will take a solemn vote on the entire PLF.
Examination of the 2025 Social Security finance bill will begin on October 28 in the National Assembly, with a vote scheduled for November 5.
After passing the National Assembly, the PLF and the PLFSS will be sent to the Senate for a new reading. The parliamentary shuttle between the two chambers will end around December 21, 2024, the deadline set by the Constitution for the adoption of the budget. In the event of persistent disagreement, the National Assembly will have the last word.
After this entire parliamentary phase, the Constitutional Council may be contacted at the end of December to examine the constitutionality of the texts.
Finally, the finance law and the social security financing law will be promulgated by the President of the Republic and published in the Official Journal no later than December 31 for entry into force from January 2025.
source Ministry of Economy and Finance
