French finance ministry warns budget deficit higher than expected

The French Ministry of Finance at the Bercy bridge over the Seine, on 5 June 2023. The Finance Minister on Monday warned that France's budget deficit could be even higher than expected, in the face of lower tax revenue and increased local spending. © AFP

France’s deficit could be much higher than expected if more cuts are not made, the finance ministry warned lawmakers, pointing to a shortfall in tax revenue and an increase in local spending.

In an update on the budget sent to lawmakers Monday night, the finance ministry said that the public sector budget deficit could reach 5.6 percent of GDP this year, higher than the 5.1 percent targeted.