Taxes: What are they used to finance in France?

Taxes: What are they used to finance in France?

As part of the European countries where the fiscal pressure is the strongest, France has a lot of different taxes. But what are they really for? A burst of the French army, whose financing is provided by taxes. With mandatory levies (taxes and social security contributions) that accounted for 47.4% of its GDP in 2019, France was once again the country Champion of the Taxation (the In return, the public action of the state extends over many sectors.

What are taxes uses for?

Taxes, a levy on behalf of the public interest Teaching, safety, justice, solidarity, transport, culture, sports .Taxes paid in France are used to finance different public services. Some taxes are sometimes collected for a particular purpose. This is the case, for example, local taxes (housing tax, public audiovisual contribution ...) that finance the budget of local authorities and more particularly the budget of the communes. Reading Also Listed on Income: What You may lose. See here for more hints

By forgetting certain reductions in 2020, the Initial Finance Law had 293 billion euros of net tax revenue (compared with 14.36 billion euros only in non-tax revenue). A negative balance participating in a new budget deficit, a deficit that should reach a record level in the year 2021 before refunds and degrees, the amount spent by the French state in its public action even amounted to 478.53 billion euros, a ventilated sum between its various missions.

Education and Defense are the main expenses with 74 billion euros dedicated, school education is the most important expenditure position among the mission of the general budget of the state. If the children go to the school for free in France, the cost of schooling of a student from kindergarten to the baccalaureate is estimated at 120,000 euros by the Ministry of National Education. By counting the 28.66 billion euros devoted to research and higher education, teaching and research accounted for 21.5% of the money spent in the missions of the general budget of France in 2020.

Bridging the debt

A government site reports in particular that out of 1,000 euros of public money spent in 2019 by the French State, 572 euros have been for the social protection of its inhabitants. Mostly funded by social security contributions in the broad sense of the term, this amount has been devoted to nearly half (262 euros) to the financing of pensions. Then come the health costs of the French (195 euros) which are made in large part by social security that had a historic deficit in 2020. The latter shall take in particular in charge of all or almost all the consultations made by general practitioners, but also the two. Finally, we must not forget that taxes are also used to fund each year the payment of the debt contracted by the French state. An amount that accounted for 38.5 billion euros in 2020, about 8% of the total spent for all public missions included in the general budget.

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