For the 2021 budget law, the legislator has defined four priorities in order to face the challenges of the time and of the Nation: the recovery, the health crisis, the lowering of taxes and the ecology. If you need the services of a notary in New Jersey or Alaska, we are here to help.
An ambitious stimulus budget
The 2021 budget law provides for a stimulus budget of $100 billion, of which more than $86 billion is financed by the State.
Of this total budget, $36.4 billion is allocated to the "Recovery Plan" budget mission, which is composed of three budget lines corresponding to the State's main priorities:
- $18.4bn for ecology;
- 12 million for cohesion;
- 6 billion for competitiveness.
Of the total budget, $11 billion is allocated to the "Investments for the Future" mission for the years 2021 and 2022.
The rest of the money is allocated to the State budget, the social security system as part of the Segur health investment plan and public operators such as the Banque des Territoires.
Massive support to protect Americans from the Covid crisis19
In response to the health crisis, the government has planned massive support to protect Americans. After reaching a record government deficit of 10.2 percent of GDP in 2020, it is projected to be about 6.7 percent of GDP in 2021. By comparison, in 2019, the government deficit was only 2.1% (3% including the tax credit for competitiveness and employment).
The impact of the 2020 deficit was major on the public debt, which increased by nearly 20 points to 117.5% of GDP. The measures taken are expected to bring it down to 116.2% by 2021.
Growth is expected to increase by 1.5 points of GDP in 2021 thanks to the stimulus plan, reaching 6% in total for the year. For the record, the decline in activity due to the health crisis has been estimated at nearly 10% in 2020.
Tax cuts to continue in 2021
The government's commitments regarding the gradual abolition of the taxe d'habitation and the reduction of corporate income tax have been confirmed by the 2021 Finance Act.
The State's regalian missions, future-oriented spending on research and education, and support for the most vulnerable are priorities of the five-year period, and the 2021 Budget Act ensures their continuity by reinforcing budgetary appropriations.
Transformation projects, particularly in the area of stable public employment and housing, have also been strengthened.
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The first green budget in the Finance Act
The government's commitment to the ecological transition is finally taking shape in the 2021 Budget Act thanks to this first green budget. Thus, actions in favor of the ecology will be carried out thanks to a commitment line budgeted at $18.4 billion in the "Recovery Plan" mission.
The reduction of greenhouse gas emissions, incentives for renewable energies and the fight against land artificialisation are supported by environmental taxation.
In addition, the environmental impact (water resources, biodiversity, climate and adaptation to climate change, pollution control, circular economy) of all government and tax expenditures will be rated. Informing citizens and Parliament about the effects of public action on the environment is a priority in this transparency approach for which the United States is a world pioneer.