Global operating grant (DGF) in Hérault: The State continues its action to support local finances
The overall operating grant (DGF) paid by the State to municipalities, intermunicipalities and departments has been put online. With an amount of more than 27 billion euros, the DGF constitutes the main State endowment for the benefit of local authorities and their groups.
Thanks to the increase of 320 million euros provided for by the finance law, 80.7% of municipalities in the Hérault department experience an increase in their DGF in 2024 compared to 2023.
In 2024, for the second consecutive year, the Government has decided to increase the DGF by 320 million euros.
In two years, the State will have supplemented the DGF by €640 million, a historic level after 13 years of decline or stability in this allocation.
The DGF reflects the demographic dynamics of local authorities and allows the diversity of territories to be taken into account. The amount received each year by municipalities, intermunicipalities and departments is based on criteria of population, wealth, resources and expenses.
For the DGF of municipalities, the finance law for 2024 increased the equalization effort by 290 million euros in favor of the most fragile rural, urban and overseas municipalities.
This increase in equalization is financed by new State credits.
It allows 80.7% of the municipalities in the department to see their DGF improve in 2024 compared to 2023. This effort shows the Government’s desire to provide continued support to municipalities, and particularly to those facing economic and social difficulties. . This increase in the amount of municipal equalization was also accentuated by the choice of the local finance committee (CFL) to increase the urban solidarity allocation by an additional 10 million euros compared to the 140 million euros provided for by the law of finances.
The reductions in municipal DGF are very limited in Hérault.
In fact, only 3.2% of municipalities will see their DGF decrease in 2024 for an amount representing more than 2% of their operating revenue.
For the DGF of intercommunalities, the finance law for 2024 provides for an increase in equalization of 90 million euros, including 30 million euros financed by new credits provided by the State. In Hérault, 13 intermunicipalities out of 16 will experience an increase in their DGF in 2024 (compared to 10 in 2023).
The DGF of the departments is also characterized by great stability at constant perimeter. The department of Hérault saw a very slight increase in its DGF of 0.06%.
This increase in the DGF is in addition to all the measures decided in the finance law for 2024 to support the finances of local authorities:
- maintaining State allocations to support local investment at a historically high level (€2 billion),
- sustainability of the green fund for accelerating the ecological transition of territories (€2 billion),
- broadening of the FCTVA base,
- increase in the local elected allocation (DPEL) supplemented by €15 million to reach €124 million with a view to improving the conditions for exercising local mandates,
- creation of an allocation dedicated to new municipalities in order to support movements to merge municipalities with an objective of general interest and to compensate in the euro for any drop in DGF that they would experience following the merger,
- maintaining the secure securities allocation at a high level (€100 million) to continue to support local authorities in the issuance of passports and identity cards,
- expansion and increase in the allocation for the protection of biodiversity and the enhancement of rural amenities (€100 million).
By proposing a new exceptional increase in the DGF voted by Parliament, the Government is demonstrating its desire to help communities cope with inflation and continue their essential public service missions.
Link to the distribution of the overall operating allocation for 2024
2024-04-11 14:33:22
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