Key Elements of the Annual Budget
The budget is among others composed of two parts: one for expenditures and the other for revenues. The former reflects the political will and the latter is dedicated to revenue and largely includes the allocations - obtained via the federal government in application of the SFA.
These budgets are adjusted according to new macroeconomic parameters.
Context
The initial 2024 budget was drawn up in October 2023 based on the September 2023 macroeconomic forecasts by the Federal Planning Bureau, which forecasted:
- a GDP growth of 1.0% for 2023 and 1.3% for 2024
- a CPI growth of 4.4% for 2023 and 4.1% for 2024
The impact on the 2024 budget stemming from the crises of recent years, in particular the surge in energy prices, is being notably alleviated due to the government's decision to gradually decrease aid.
In particular, this year's budget provides an increase of the expenditures linked to the youth aid sector (+3.7%), additional resources for nurseries, the continuation of the “Pacte pour un Enseignement d’excellence” (€308 million dedicated in 2024) and the launch of calls for projects under the €1 billion Investment Plan for CFB’s school buildings renovation.
The Government has also decided to increase budgetary efficiency by setting up a spending review unit within the Administration, strengthening the evaluation of public policies and the undergoing development of budget management tools.
ESA Balance
| 2024 initial Budget (€ millions) | |
|---|---|
| Total revenues | 13,213 |
| Total Expenditures | 14,634 |
| Under utilisation | 162 |
| Gross balance | -1,259 |
| Perimeter balance | 312 |
| ESA correction | -52 |
| ESA financing balance | -999 |
Revenues
The French Community has no fiscal power, the main part of its revenues comes from the Special Financing Act allocations which are tax transfers collected by the federal State. These allocations are calculated in particular with the GDP growth, the inflation, the “pupil key”, the demographic adjustment coefficient (growth of the population under 18 years old), or the IPP key (distribution of the tax on natural persons between the Flemish and French Communities).
| 2024 initial Budget (€ million) | |
|---|---|
| LSF Transfers | 12,714 |
| Other revenues* | 499 |
| Total | 13,213 |
* French Community’s own revenues, sales of real estate, revenues from the National Lottery, etc.
Expenditures
Education, Research and Training sector represents a little over three quarters of the French Community’s general expenditure budget. For the Education field (from nursery school to higher education level), a very large proportion of the expenditure goes towards payment of teachers’ salaries. The expenditure budget is divided into five main categories.
| 2024 initial Budget (€ thousand) | |
|---|---|
| General Services | 1,078,858 |
| Culture, health, social issues, sport, etc. | 2,195,577 |
| Education, research, teaching, etc | 10,523,851 |
| Public debt | 264,799 |
| Allocation to the Walloon Region and the Cocof | 571,320 |
| Total | 14,634,405 |
| The allocations to the Walloon Region and the French Community Commission represent the funds paid annually by the FWB to the Walloon Region and the French Community Commission of the Brussels-Capital Region as part of the transfer to these two entities of the exercise of certain of its powers under the St Quentin agreements. |
| The French Community’s expenditure is particularly dependent on the Belgian CPI growth as wages represent about 50% of the budget. |
Multiannual Path
Based on the multi-year path drawn up as part of the preparation of the initial 2024 budget, the ESA balance of the French Community, including its scope of consolidation, is estimated at €-1,152 million in 2025, €-1,357 million in 2026, and €-1,353 in 2026.
