France Budget Deficit Narrows in January-May

France recorded a state budget deficit of €159.2 billion in the January-September 2026 period, widening from €155.4 billion a year ago, as spending outpaced revenues. Expenditures rose 4.9% year-on-year to €404.1 billion, primarily due to increases in personnel costs, operating expenses, debt-servicing costs, and investment spending. Meanwhile, revenues rose 4.1% to €275.0 billion, supported by higher tax receipts. Net tax revenue increased 3.9% to €250.5 billion, mainly driven by VAT and income tax collections. Non-tax revenue also climbed 11.6% to €19.5 billion. Meanwhile, the deficit in special Treasury accounts narrowed to €30.1 billion from €34.3 billion a year earlier.

France’s state budget deficit widened to EUR 159.6 billion in the January-August period from EUR 157.5 billion a year earlier. Expenditure rose 4.4% year-on-year to EUR 362.97 billion, driven mainly by higher debt-servicing costs amid rising interest rates and inflation, increased military spending, and higher public energy service charges (CSPE). Meanwhile, general budget revenue increased 3.1% to EUR 228.55 billion. Net tax revenue rose to EUR 206 billion, supported by higher net personal income tax, the State’s share of net VAT revenue, net corporate income tax, and other net tax revenue. Non-tax revenue increased to EUR 18.9 billion, mainly due to the return to the State in January 2026 of EUR 6.9 billion in non-consumable endowments allocated under the Future Investment Programs (PIA) in 2010 and 2014, which had reached maturity. Special Treasury accounts posted a EUR 25.2 billion deficit, an improvement of EUR 6.3 billion from the end of August 2025.

France’s state budget deficit widened to EUR 145.9 billion in January-July 2026 from EUR 142 billion in the same period last year, as expenditure growth continued to outpace revenue growth. General budget revenues increased 4.2% year-on-year to EUR 201.2 billion, while expenditures rose 4.6% to EUR 284.2 billion. Excluding tax refunds and rebates, net tax revenues increased to EUR 182.9 billion, supported by higher personal income tax, VAT, corporate income tax, and other tax revenues. Non-tax revenues also rose to EUR 18.3 billion, mainly due to the return of unused investment funds. Meanwhile, higher expenditures reflected rising interest rates and inflation, increased military spending, and higher public service energy charges. Special Treasury accounts posted a EUR 22.5 billion deficit, improving from a EUR 27.1 billion shortfall a year earlier.