France’s central government budget deficit widened to EUR 159.6 billion in the January–August period, up from EUR 157.5 billion a year earlier. Expenditure increased by 4.4% year-on-year to EUR 362.97 billion, driven primarily by higher debt-servicing costs amid rising interest rates and inflation, increased military spending, and higher public energy service charges (CSPE).
At the same time, general budget revenue rose by 3.1% to EUR 228.55 billion. Net tax revenue reached EUR 206 billion, supported by higher net personal income tax, the State’s share of net VAT receipts, net corporate income tax, and other net tax revenue. Non-tax revenue climbed to EUR 18.9 billion, mainly reflecting the January 2026 return to the State of EUR 6.9 billion in non-consumable endowments allocated under the Future Investment Programs (PIA) in 2010 and 2014, which had reached maturity.
Special Treasury accounts posted a deficit of EUR 25.2 billion, an improvement of EUR 6.3 billion compared with the end of August 2025.
