FX.co ★ France Budget Deficit Narrows in September

By the end of September 2025, France's central government reduced its budget deficit to EUR 155.4 billion, a decrease from the EUR 173.8 billion deficit recorded during the same period the previous year. This improvement in fiscal health was supported by a 5% increase in government revenues, which reached EUR 264.3 billion. The growth in revenues was primarily attributed to stronger receipts from income and corporate taxes, an enhanced state share of VAT, and elevated excise duties on gas and electricity. Conversely, non-tax revenues experienced a decline, largely due to reduced inflows from EU co-financing under the National Recovery and Resilience Plan. This decrease was somewhat mitigated by higher contributions from dividend payments, administrative fines, and treasury withdrawals from public entities. On the expenditure side, total expenses decreased by 0.5% to EUR 385.3 billion. The reduction was influenced by decreased transfers to public operators and the cessation of the Covid-19 debt amortization program, which effectively countered increased spending on energy services and military operations. Additionally, special Treasury accounts reported a deficit of EUR 34.3 billion, reflecting a EUR 4.1 billion improvement compared to the previous year.