France Budget Deficit Widens in H1
2026-08-04 07:04
By
Kyrie Dichosa
1 min. read
France's state budget deficit widened to EUR 106.8 billion in January–June 2026 from EUR 100.4 billion in the same period last year, as higher spending outpaced revenue growth.
General budget revenues increased 3.7% year-on-year to EUR 184.6 billion, while expenditures rose 5.4% to EUR 240.5 billion.
Excluding tax refunds and rebates, net tax revenues climbed to EUR 168.5 billion, supported by higher personal income tax, VAT, and other tax receipts, partly offset by lower energy excise revenues.
Non-tax revenues also increased to EUR 16.1 billion, mainly due to the return of unused investment funds.
Meanwhile, higher expenditures reflected increased debt servicing costs, rising military spending, higher public energy service charges, and new social contribution compensation payments.
Special Treasury accounts posted a EUR 17.6 billion deficit, improving from a EUR 20.8 billion shortfall a year earlier.