FX.co ★ France Budget Deficit Widens in H1

France’s central government budget deficit widened to EUR 106.8 billion in January–June 2026, up from EUR 100.4 billion in the same period a year earlier, as expenditure growth outstripped gains in revenue. General budget revenues rose 3.7% year-on-year to EUR 184.6 billion, while total spending increased 5.4% to EUR 240.5 billion.

Net tax revenues, excluding tax refunds and rebates, reached EUR 168.5 billion, driven by higher personal income tax, VAT, and other tax receipts. This was partly offset by a decline in energy excise revenues. Non-tax revenues also increased, to EUR 16.1 billion, mainly reflecting the return of unused investment funds.

On the expenditure side, the increase was largely attributable to higher interest payments on public debt, rising military outlays, greater public energy service charges, and new compensation payments for social contributions. Special Treasury accounts recorded a deficit of EUR 17.6 billion, an improvement compared with the EUR 20.8 billion shortfall in the same period of the previous year.