Paris’s Financial Health: Key Figures on Spending, Revenue, and Debt Since 2020
Paris, March 10, 2026 – An in-depth analysis of the City of Paris’s financial situation from 2020 to 2024, utilizing data from the Observatory of Local Public Finances and Management (OFGL), sheds light on the capital’s economic trajectory. The review focuses on three critical areas: municipal expenditures, revenue sources, and the evolution of public debt.
Expenditures: How the City Invests
In 2024, the City of Paris reported total expenditures of 9,945 million euros (M€), equating to 4,627.2 euros per inhabitant. This represents an average annual increase of 3.2% since 2020. These expenditures are categorized into operating costs and investment outlays.
This increase in spending occurred amidst a period of notable national inflation, reaching 5.2% in 2022 and 4.9% in 2023.
Operating expenses, which cover personnel costs, charges, external purchases, and economic aid, amounted to 7,749 M€ in 2024, showing an average annual increase of 2.8% since 2020.
Investment expenditures, dedicated to maintaining and developing the city’s infrastructure, primarily fall under ‘equipment expenditures.’ These include concrete projects such as construction, roadworks, vehicle acquisition, and IT. In Paris, equipment expenditures have seen an average annual increase of 8.6%, reaching 1,415 M€ in 2024.
Revenue: The City’s Income Streams
To fund its investments, the city relies on various income sources, including the sale of goods and services, subsidies, and state contributions. However, the primary source of revenue for municipalities remains taxes. The ‘Taxes and Duties’ line in municipal budgets encompasses all funds collected from residents (e.g., property tax) and businesses (e.g., CFE, Tascom).
Independent of municipal choices, the state annually determines the increase in the bases of major local taxes. In 2022, 2023, and 2024, these increases exceeded 3%.
In Paris, tax revenues increased from 5,190 M€ in 2020 to 6,108 M€ in 2024, marking an average annual rise of 3.3%. This translates to approximately 2,842 euros per inhabitant in 2024.
Debt: The Evolution of Municipal Indebtedness
To address budgetary imbalances, municipalities may resort to borrowing, thereby incurring debt. The outstanding debt of Paris increased by an average of 6.7% per year between 2020 and 2024, reaching 10,723 M€ in the latter year, or 4,989.1 euros per inhabitant.
According to Thomas Rougier, Secretary General of the OFGL, “A high debt per inhabitant is not necessarily a sign of poor financial health (a typical example is a tourist municipality, which often has a high debt per inhabitant). Conversely, very little debt can mean that investments are too low (poor condition of networks – water/roads – under-equipment), etc. The outstanding debt per inhabitant is not necessarily an indicator of financial health.”
Based on this debt amount and its gross savings (305.4 M€ in 2024), it would take several years for Paris to repay its debt without making any new investments.
Source: La Montagne, Observatory of Local Public Finances and Management (OFGL)
