Evaluation and Monitoring of Fiscal Expenses in France

Note de la Cour des Comptes

In France the total cost of approximately 465 tax exemptions reached 94,2 Md€ in 2022. Over the past decade, there has been no effective oversight to control their growth or enhance their assessment. The lack of political will to implement measures has led to uncertainties about their quality and alignment with objectives.

To address this, the Cour des Comptes published a report in July 2023 suggesting treating these expenditures as regular expenses with caps, time limits, and performance standards. The document highlights several sectors (support for innovation and research, housing, reduced VAT rates, overseas territories) that warrant specific attention due to extensive studies supporting the low effectiveness of their tax expenditures. Reviewing these expenses involves demonstrating their value, precise targeting, thorough evaluations, and considering reforms or eliminations based on systematic assesments.

Note thématique: Piloter et évaluer les dépenses fiscales