In a highly inflationary context marked by soaring energy prices, the French government presented its budget for 2023 on Monday, September 26. Households will be entitled to a few nudges.
Supposed to “protect the French and move towards full employment”, the budget was built on an inflation forecast of 4.3% in 2023, after 5.4% in 2022. Although Bruno Le Maire sounded the end “whatever the cost”, massive aid to businesses and households during the health crisis due to COVID-19, spending remains at a high level.
Tariff shield
The economic impact of the conflict in Ukraine is worsening, with a long-lasting energy crisis, thehe government is devoting no less than 45 billion euros to financing the tariff shield on gas and electricity pricesa system extended beyond December 31, which should contain the rise in bills to 15% at the start of 2023.
According to Elisabeth Borne, during a press conference on September 14, this corresponds to an increase of 25 euros per month on the gas bill and 20 euros per month for electricity, instead of 180 euros per month without shield tariff.
Exceptional energy check
To protect the most modest, the Prime Minister announced the establishment of an exceptional energy check. It will offset the +15% increase mentioned above. “This aid will concern the 12 million poorest households, i.e. four out of ten households, and its amount will be 100 or 200 euros depending on income.”
It will be paid by the end of the year. This aid will be paid in early 2023 to nearly 12 million households. It will be calculated on the basis of income for the year 2022, compared to 2021.
The €200 should thus be allocated to the first deciles, i.e. the 20% most modest households in France and the €100 to deciles 3 and 4.
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Exceptional energy check: are you concerned by this aid of up to €200?
Indexation of the income tax scale
The government has also chosen to maintain the indexation of the income tax (IR) scale to inflation, a cost of 6.2 billion euros. The taxes are calculated in relation to inflation. Therefore, the income tax scale will be increased to 5.4%.
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Income tax: will you pay less with the readjustment of the scales due to inflation?