French state budget deficit falls by a quarter

9th December 2011, Comments 0 comments

France's state budget deficit fell by a quarter in October on a 12-month basis, to 99.4 billion euros ($132.5 billion) from 133.1 billion euros a year earlier, the budget ministry said on Friday.

The central budget is one component of the EU measure of the public budget comprising also welfare and local authority budgets.

The French government has sought to reassure investors and maintain its triple-A rating with a series of austerity measures, including the announcement last month of 65 billion euros in savings by 2016, on top of a 12-billion-euro deficit-cutting package announced in August.

The government has said it needs to make 100 billion euros in savings to balance the budget by 2016.

On the central government budget, expenditures were at 310.8 billion euros against 354.3 billion on October 31, 2010.

Excluding debt charges, expenditure progression was "largely in conformity" with the government's fiscal plans, the ministry said.

General budget revenues were at 229.1 billion euros against 223.6 billion at the end of October 2010.

Corporate tax revenues were up 22.8 percent, income tax revenues up 4.8 percent and value-added tax revenues up 5.1 percent.

Other fiscal receipts were down however, at 19.1 billion euros from 25 billion euros in October 2010.

In November, the budget ministry said the state budget deficit should be 95.3 billion euros in 2011 -- 200 million euros less than previously expected thanks to spending cuts.

The ministry says 2011 will mark the first time the French state has reduced annual public spending, excluding debt charges and pensions, since 1945.

© 2011 AFP

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