For nearly fifty years, France has not presented a balanced budget. The current deficits are largely a result of recent crises, such as those triggered by Covid-19 and the war in Ukraine, and the support for households and businesses that they have required. However, the country faces a more deep-seated and long-lasting issue: its inability to eliminate inefficient public spending. The response to political difficulties and corporatist demands often involves creating new aid or tax benefits, which are difficult to revoke afterwards due to strong interest group mobilization. Many expenses miss their target and benefit certain actors rather than the community as a whole.
Despite the frustration of this situation, there have been methods available for decades to rigorously measure the impact of policies on chosen indicators. For example, do exemptions of employer charges create jobs? Do housing subsidies affect homeownership? Does class size reduction improve student performance? Evaluations can provide answers to these questions and guide public decision-making when conducted scientifically by independent researchers. Three measures could be implemented to enhance this process. Firstly, introducing extinction clauses for certain expenses in the organic law related to budget laws. These expenses would be automatically revoked after a set period if evaluations show they do not achieve their goals.
The law would also specify the indicators for evaluation, allowing the government to clarify its political objectives. This principle, adopted by other countries, shifts the burden of proof. Instead of having to demonstrate that a measure does not work to repeal it – a tedious and uncertain task – it would be necessary to prove its effectiveness to maintain it. This approach would allow for a thorough review of all economic and social intervention expenses. This method would help prioritize the evaluation of expenditures that may not be delivering the intended results.
In addition, creating an independent evaluation body could provide the expertise needed for thorough and unbiased assessments of government policies. This body would ensure that evaluations are conducted in a transparent and scientifically sound manner, providing clearer insights into the effectiveness of public spending. Finally, establishing a dedicated fund for policy evaluation would ensure the sustainability and continuity of these assessments, as well as encourage the institutionalization of evidence-based decision-making within the government. By investing in rigorous evaluations, France can better understand the impact of its policies and make more informed decisions to improve the effectiveness of public spending.
In conclusion, France’s persistent budget deficits are not only a result of recent crises but also a reflection of the country’s struggle to address inefficient public spending. By implementing measures such as extinction clauses for expenses, clarification of evaluation indicators, the creation of an independent evaluation body, and a dedicated fund for policy evaluation, France can enhance its ability to measure the impact of government policies accurately. By prioritizing evidence-based decision-making and fostering a culture of evaluation, the country can work towards more effective and sustainable public spending practices in the long term.
