Households, businesses, industrialists, associations, local authorities and… Presidency of the Republic: inflation definitely affects everyone. Spotted by our colleagues at Politico, a budget document published as an annex to the finance bill for 2024 reviews the accounts of the Élysée Palace, and gives prospects for the coming year. Like the rest of the country, the castle experienced “exogenous hazards”, which weighed heavily on its budget.
In 2023, the budget initially amounted to 115 million euros, recalls the document. However, ultimately, the “budgetary landing forecasts at the end of 2023” stand at 127.4 million euros. A hole of 12.4 million euros, therefore, and a jump of 12% compared to the previous year.
To explain this unforeseen deficit, the Élysée puts forward two arguments: the “unavoidable increase in spending”, on the one hand, and the “very strong presidential activity”, on the other hand. Like many economic players, the Château saw its energy bill skyrocket by 1.1 million euros, as well as its payroll and the prices of its food. “The presidency has seen […] an increasing number of requests for price revisions in the context of its public procurement,” the budget document also indicates.
At the same time, Emmanuel Macron’s travels, particularly by plane, represented a significant expense, the head of state’s entourage told Politico, while the associated costs – including fuel for the aircraft – have increased. “As the presidential agenda is difficult to know with certainty at the time of drawing up budget forecasts, travel expenses are necessarily subject to coordination and constant updating by all stakeholders,” adds the document.
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However, the Presidency of the Republic intends to tighten its belt to limit the damage. First, the investment and operating budget of the departments will be reduced by 5%. Then, the payroll will be contained, allowing “controlled execution of personnel expenses”, despite the increase in the index point this summer. The presidential palace also intends to establish a “systematic re-invoicing to the ministries of certain activities at the Palace or for those accompanying them on official trips”. This process, which will save a few dollars, will be supplemented by a “reinvoicing agreement in the event of the organization of shared events”. Thanks to these efforts, the “landing level” should be reduced to 122.9 million euros, and the deficit, thus, to 9.1 million euros, state services hope.
The fact remains that the Château requires an “increase in the presidential allocation” for 2024, a decision justified by “the intense resumption of activity since 2022, as well as the inflationary context”. The travel envelope would thus increase to 21 million euros, and personnel and investment expenses would increase. The overall allocation would then stand at 122.6 million euros, an increase of 11%, or 12 million euros, compared to the 2023 budget. At the same time, the presidency expects to see its own revenue increase significantly, from 1.6 to 2.5 million euros, thanks in particular to the “reinvoicing of official trips and events”.
In its latest report, published this summer, the Court of Auditors already warned of the increase in expenses of the Presidency of the Republic in 2022, highlighting the effect of “presidential trips abroad, in a context of high inflation” . It highlighted an “improvement” in the financial management of the Château, while noting “residual margins for improvement” here and there. So many elements which seem to be confirmed, again this year.
