FX.co ★ France Budget Deficit Widens in January-July

France’s central government budget deficit widened to EUR 145.9 billion in January–July 2026, up from EUR 142 billion in the same period a year earlier, as expenditure continued to grow faster than revenue. General budget revenues rose 4.2% year-on-year to EUR 201.2 billion, while expenditures increased 4.6% to EUR 284.2 billion. Excluding tax refunds and rebates, net tax revenues climbed to EUR 182.9 billion, driven by higher receipts from personal income tax, VAT, corporate income tax, and other taxes. Non-tax revenues also grew, reaching EUR 18.3 billion, largely due to the return of unused investment funds. On the expenditure side, the increase reflected the impact of higher interest rates and inflation, greater military spending, and higher energy costs for public services. Special Treasury accounts recorded a deficit of EUR 22.5 billion, an improvement compared with the EUR 27.1 billion shortfall posted a year earlier.