France budgets for public deficit of 7.7 percent this year
France's public deficit will hit a record 7.7 percent of economic output this year and then fall to six percent in 2011, according to a forecast in the government budget unveiled on Wednesday.
The public deficit includes the shortfall in spending across France's government budget, local authority spending and social security fund and is keenly watched by money markets and France's European partners.
The budget, which was presented to ministers in President Nicolas Sarkozy's cabinet, forecasts the budget deficit -- that of government spending alone -- will hit 152 billion euros this year and fall to 92 billion in 2011.
Finance Minister Christian Lagarde plans to increase revenue by closing tax loopholes worth 9.4 billion euros, and to cut spending by allowing 31,638 government employees to retire without replacing them, the budget said.
© 2010 AFP