Transforming Governance: Bayrou's Strategy under the Microscope
Francois Bayrou might be displeased. In February, following a delay of almost a month and a half in adopting the 2025 budget, the prime minister proposed an innovative exercise to his cabinet – the "zero-base budget" (ZBB). Originating in the 1960s for Texas Instruments and utilized by President Jimmy Carter in 1977, this method involves rebuilding the budget from scratch, instead of simply building on the previous year's budget.
"We need to reconsider all our budgets, not from the continuation of the previous year's budget, merely inflated due to inflation, but from what is necessary to carry out the required service or action," the Matignon dweller explained in his policy statement on January 14.
Over the past few weeks, all ministries have been requested to provide Matignon with a concise and comprehensible justification of their purpose, actions, and the resources allocated to them. However, the approximately 600 pages resulted from this work, recently transmitted to parliamentarians and perused by our website, appear decidedly lacking.
Curious about France's fiscal landscape? Here's a neat rundown:
- Budget Expenditure 2025: France's total expenditure for 2025 is approximately 844 billion euros, with refunds and rebates accounting for over 148 billion euros[1].
- Austerity Budget: The 2025 budget is an austerity budget, featuring cutbacks like a 2.1 billion euro reduction in the Official Development Assistance (ODA) budget[2].
- Public Deficit Goals: France strives to bring its public deficit within European limits of below 3% of GDP by 2029[3][4].
Given these financial constraints, the finance law preparation could be impacted. Ministries may face challenges in distributing resources under these circumstances.
Though specific ministry responses regarding a "zero-base budget" are not detailed, the overall financial tightening necessitates adaptability from ministries. They may need to adopt stricter budgeting practices and potentially reassess priorities and initiatives within their departments.
Overall, while there's no explicit mention of a "zero-base budget" in the search results, France's fiscal policies are undergoing transformative changes aimed towards reducing deficits and managing public finances more efficiently.
Francois Bayrou's displeasure could stem from the challenges and criticism surrounding the adoption of the 2025 budget, which was delayed by almost a month and a half. This budget, intended to be an austerity budget with cutbacks and reduced spending, originates from the "zero-base budget" method, first introduced by Texas Instruments in the 1960s and adopted by President Jimmy Carter in 1977. The prime minister proposed this innovative exercise to his cabinet, advocating for a complete revision of the budget, rather than a simple continuation of the previous year's budget.
Recently, all ministries were requested to provide justification of their purpose, actions, and resources, yet the resulting documents, transmitted to parliamentarians and reviewed by general news outlets, appeared lacking in clarity and comprehensiveness.
As France strives to bring its public deficit within European limits and faces financial constraints, ministries may need to adapt their budgeting practices, potentially reassessing priorities and initiatives within their departments to align with the fiscal policies undergoing transformative changes.
