France Budget Deficit Narrows in January-November

France’s central government budget deficit narrowed to EUR 124.7 billion in the January-December period of 2025, down from EUR 156.3 billion a year earlier. Government revenues rose 8.6% year-on-year to EUR 387.7 billion, supported by higher net income tax, corporate tax, VAT, and other net tax receipts. Non-tax revenues increased by 3.4%, reflecting higher dividend receipts, administrative fines, and other miscellaneous receipts, despite lower EU contributions linked to the co-financing of the National Recovery and Resilience Plan. Meanwhile, total expenditures slightly declined by 0.2% to EUR 510.2 billion, driven by higher debt service costs, increased spending on energy services and military operations, and higher transfers to local authorities and the EU, partly offset by reduced payments to public operators and the removal of the Covid-19 debt amortization program. Special Treasury accounts posted a EUR 2.3 billion deficit, improving from EUR 2.4 billion in December 2024.

France’s central government budget deficit narrowed to EUR 155.4 billion in the January-November period of 2025, from EUR 172.5 billion in the same month a year earlier. Government revenues rose 6.3% year-on-year to EUR 331.8 billion, supported by higher net income tax , corporate tax, and other net tax receipts. Non-tax revenues also increased by 3%, reflecting higher dividend receipts, administrative fines, and treasury withdrawals, despite lower EU contributions linked to the co-financing of the National Recovery and Resilience Plan. Meanwhile, total expenditures went up by 1.4% to EUR 468.7 billion, driven by temporary debt service costs, increased spending on energy services and military operations, and higher transfers to local authorities and the EU, partly offset by reduced payments to public operators and the removal of the Covid-19 debt amortization program. Special Treasury accounts posted a EUR 18.5 billion deficit, improving from EUR 22.5 billion in November 2024.

France's central government budget deficit narrowed to EUR 136.2 billion at the end of October 2025, from EUR 157.4 billion in the same month of the previous year. Government revenues grew by 6.5% year-on-year to EUR 299.2 billion, primarily driven by increased net personal income tax, net corporate tax, and other net tax revenues. Non-tax revenues declined, dragged down by lower receipts from the EU in line with the expected schedule for co-financing part of the National Recovery and Resilience Plan (PNRR). Meanwhile, fiscal expenditures fell by 0.3% year-on-year to EUR 426.7 billion, weighed down by reductions in payments to several public operators and by the elimination of program 369, “Amortization of State Debt Related to Covid-19,” in the 2025 Initial Budget Act. The special Treasury accounts posted an EUR 8.7 billion deficit in October, down from EUR 10.3 billion a year earlier.