"an increasing part public spending: This article explores the topic in depth.
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". Furthermore, an increasing part public spending:
AWhile the Senatorial Commission of Inquiry on Public Aid for Large Companies made its conclusions on Tuesday, July 8, the question of their magnitude, their efficiency and their management is far from occupying the place it should in the budgetary debate. In addition, And yet. For example, the hearings carried out in recent months have confirmed an observation widely shared by researchers and administrations: these aids are numerous, not very readable and rarely evaluated. However, Their weight in public finances. In addition, as their role in the economic guidelines of the country would justify a much more supported exam.
One of the reasons is due to their nature. Moreover, A large part of public aid for large companies do not take the form of direct subsidies. but goes through tax advantages (such as tax “an increasing part public spending reductions) or exemptions from social security contributions. These devices do not give rise to payments: these are revenues that the State. Social Security choose not to perceive. Result: they do not appear as expenses in budgetary documents. and largely escape public debate – even though they represent a form of expense in its own right.
Indirect support – "an increasing part public spending
Our study. published this week in the Political economy review (Abdelsalam, Delatte, Guillaume, 2025), offers for the first time a global and historical estimate of these indirect aids. They had so far never been gathered in a single place. from a historical perspective allowing to follow their evolution and to appreciate its long -term trends. By exploiting forty-five years of economic and financial archives, we highlight three significant facts.
First. their magnitude: on average, more than 90 billion euros in tax advantages and social exemptions are granted each year to businesses. In 2022, this represented more than 110 billion euros in revenue not perceived. For 100 euros in theoretically due societies, only 70 are actually collected. For 100 euros in social security contributions due, social security receives only 84. These indirect supports now represent almost 60 % of all public aid to businesses.
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