French regional audit chamber launches unprecedented procedure over Gironde's 'excessive' deficit

France's regional audit chamber has triggered an exceptional procedure against the Gironde department, citing an "excessive" budget deficit that marks a first for a departmental collectivity.

The Chamber of Accounts of Nouvelle-Aquitaine (CRC) determined on July 16 that the Gironde department's 2025 budget deficit exceeded legal thresholds. This declaration initiates a heightened level of financial oversight and potentially allows the state to take control of the department's budget management.

The situation arose after the prefect of Nouvelle-Aquitaine requested the CRC to investigate. The department had initially reported a cumulative deficit of approximately 38.6 million euros. However, the CRC's audit revealed significant accounting discrepancies, including the integration of nearly 92 million euros in operating expenses that should have been allocated to the 2025 fiscal year, primarily related to social policies.

Following these adjustments, the operating deficit for the main budget surged to over 170.9 million euros. While a 20 million euro investment surplus partially offset this, the rectified cumulative deficit stands at 151 million euros. This figure represents 6.97% of operating revenues, surpassing the 5% legal limit that triggers the excessive deficit procedure.

The Gironde department has contested the CRC's findings, arguing that the chamber is improperly accounting for 14 months of social benefits (RSA) and 13 months of other social payments within a single fiscal year, despite corresponding revenues covering only twelve months. The department acknowledges deferring some social expenses to subsequent years due to cash flow issues, a practice the CRC demands cease to adhere to the principle of budgetary annuality.