France’s Budget Deficit Narrows in Q1 2026

France’s state budget deficit shrank to €42.9 billion in January–March 2026, down from €47.0 billion a year earlier. Revenues rose 11.8% year-on-year to €86.8 billion, outpacing a 4.6% increase in expenditures to €118.0 billion. Special Treasury accounts posted a deficit of €11.7 billion, nearly unchanged from €11.8 billion in the same period last year.

France’s state budget deficit narrowed to EUR 32.1 billion in January–February 2026 from EUR 40.3 billion in the same period last year, amid higher revenues and lower spending. Total revenues increased by 16.0% year-on-year to EUR 52.5 billion, driven by increased VAT receipts and a sharp rise in non-tax revenues. Net tax revenues totaled EUR 43.5 billion, reflecting a higher State share of net VAT and other net tax revenues. Meanwhile, total expenditures fell by 1.3% to EUR 76.8 billion, primarily due to reduced general budget outlays amid delays in certain payments for intervention expenditures carried out by the social ministries. Special Treasury accounts posted a deficit of EUR 7.8 billion, largely unchanged from EUR 7.7 billion in the previous year.

France’s state budget deficit narrowed to EUR 9.7 billion at the end of January 2026, compared with EUR 17.3 billion a year earlier. Total revenues rose sharply by 49.4 year-on-year to EUR 36.3 billion, supported by stronger VAT receipts and a significant increase in non-tax revenues, notably the reimbursement of unused endowments under past investment programs. Net tax revenues increased to EUR 28.7 billion, although income tax and corporate tax collections declined annually. Meanwhile, total expenditure rose by 4.6% to EUR 39.6 billion, driven by higher defense spending, increased investment outlays, and larger transfers to the European Union, partly offset by slightly lower operating costs and debt servicing expenses. Special Treasury accounts recorded a deficit of EUR 6.5 billion, widening from EUR 3.8 billion a year earlier, largely due to timing effects related to VAT transfers to local authorities.