France's Struggle to Narrow Public Deficit Amid Budget Challenges

France's 2024 public sector budget deficit is nearing 6% of GDP, as announced by Finance Minister Eric Lombard. The government is working to reduce it to 5.4%, following last year's unexpected tax revenue decline and spending increase, which pushed the deficit higher.

France's 2024 public sector budget deficit is nearing 6% of economic output, according to Finance Minister Eric Lombard, reflecting a fiscal shortfall that aligns with earlier projections.

The initial budget proposal for 2024 aimed for a deficit of 6.1%. Recent remarks from a government spokeswoman indicate a slightly improved fiscal outlook than initially expected. In response, Prime Minister Francois Bayrou is committed to reducing the deficit to 5.4% this year.

This fiscal challenge comes on the heels of a higher-than-anticipated deficit last year, as tax revenues fell short and expenditures increased more rapidly than predicted.

(With inputs from agencies.)