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Local authorities, Marine Tondelier

State grants to local authorities: Abolish the DILICO levy on local authorities

Direction of change: increase, compared with current law.

The lever. Sums paid each year by the State to municipalities, départements and regions: amount, distribution, equalisation. Direction rule: ↑ higher grants.

« Organiser une conférence financière avec les collectivités pour définir une trajectoire budgétaire pluriannuelle. Supprimer le prélèvement sur ressources des collectivités territoriales dit « DILICO ». »1

Translation by the editorsOrganise a financial conference with local authorities to define a multi-year budget path. Abolish the levy on the resources of local authorities known as “DILICO”.

Encoding

The position maintains current law: no parameter changes.

Costing

Announced by the candidate

not announced

The programme does not cost this measure.

Published costings

none

No external costing of this position recorded to date.

Our calculation

€0bn

per year for the public accounts, zero cost.

The calculation

  • Status quo: The position maintains current law: zero cost compared with current policies.

Assumption by the editors. The DILICO (local authority revenue smoothing mechanism) puts a share of local authorities' revenue in reserve (€740m in 2026, paid by the regions, the départements and the inter-municipal bodies), paid back 90% to the contributors in thirds over three years and 10% to the horizontal equalisation funds: everything returns to local authorities, and its abolition costs the State nothing in 2032 (if renewed, the year's levy is offset by the repayments from previous years; if not renewed, it no longer exists). The financial conference has no cost.

Current law, sources and limits of the cost schedule

Current law. State financial transfers: €49bn in the LFI 2025 (€45bn of deductions from revenue and €4bn of appropriations from the RCT mission). DGF: €27bn in 2025, compared with €40bn in 2014. In 2026, the regions' DGF is brought back into the budget (−€5.2bn of transferred VAT) and the effort asked of local authorities is about €3bn. The LPFP 2023-2027 provided for transfers of €53bn in 2023 and €56bn in 2027.

Horizon. Full year; to be expressed relative to the extended LPFP (public finance programming act) path.

Limits. An envelope announced in euros (for example €10bn over five years) is costed through the parameter in €bn per year, €1 announced = €1 of State spending, not as a percentage of State transfers to local authorities. An increase in grants worsens the State balance but not necessarily that of general government as a whole, if local authorities save or invest. The scope (with or without transferred VAT) changes the amounts: €49bn to €56bn. Indexation of the communes' DGF (general operating grant) to inflation (option, rule on public bases of 18 October 2026): same common assumption as for the public sector pay index point and pensions, inflation of 1.75% per year at the centre (Cour des comptes), 1.5 to 2.0% for the range, first effect on 1 January 2028, cost in 2032 = cumulative gap of five upratings with the current rule (a DGF set each year in the finance act, which remained at €27.4bn in 2025 and in 2026). Communes' DGF in 2025: €12.8bn (Government); 12.8 × (1.0175^5 − 1) = €1.16bn (12.8 × 7.73% = 0.99; 12.8 × 10.41% = 1.33; editors' calculations, 2025 euros). Reading key: one point of indexation for one year is worth €0.128bn for the communes, €0.27bn for the whole DGF. Inter-municipal bodies, departments and regions are not counted. The DILICO (cyclical smoothing mechanism for local authority revenue: €740m in 2026, paid by the regions, the departments and the inter-municipal bodies, 90% paid back to the contributors in thirds over three years, 10% to the horizontal equalisation funds) places local revenue in reserve and returns it to local authorities: as the whole levy goes back to local authorities, abolishing it costs the State nothing in 2032: if renewed each year, that year's levy is returned in 2032 through the repayments of previous years; if not renewed, it no longer exists (editors' reading).

How to read these amounts. These are static costs and revenues, with no feedback effect, over a full year: nothing on growth, employment or the revenue that economic activity would gain or lose. A higher net cost does not on its own make a worse policy, nor net savings a better one: each programme rests on an economic model (demand-led stimulus, lower compulsory levies, consolidation of the public accounts…) that the cost schedule does not settle. GDP itself measures a volume of activity, not well-being or the usefulness of what is produced. Economic models and feedback effects.

This lever in the method · Costing for Marine Tondelier

  1. Pour une prospérité écologique, programme des Écologistes, p. 68. Open the document at this page.

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