France’s central government budget deficit narrowed to EUR 9.7 billion at the end of January 2026, down from EUR 17.3 billion a year earlier. Total revenues surged by 49.4% year-on-year to EUR 36.3 billion, driven by stronger VAT receipts and a marked increase in non-tax revenues, particularly from the reimbursement of unused funds from previous investment programs. Net tax revenues rose to EUR 28.7 billion, even though income tax and corporate tax receipts declined compared with the previous year.
On the expenditure side, total spending increased by 4.6% to EUR 39.6 billion. This rise was fueled by higher defense outlays, increased investment spending, and larger contributions to the European Union, partially offset by slightly lower operating costs and interest payments on public debt.
Special Treasury accounts posted a deficit of EUR 6.5 billion, compared with EUR 3.8 billion a year earlier. This deterioration was largely attributable to timing effects linked to the transfer of VAT revenues to local authorities.
