FX.co ★ France Budget Deficit Smallest in 4 Months

As of October 2025, France's central government budget deficit decreased to EUR 136.2 billion, compared to EUR 157.4 billion in the same period the previous year, marking the smallest deficit since June. This improvement was largely due to a 6.5% increase in government revenues, reaching EUR 299.2 billion. The rise was primarily fueled by higher net personal income tax, net corporate tax, and other tax revenues. Conversely, non-tax revenues saw a decline, largely due to reduced EU receipts as expected under the co-financing schedule for the National Recovery and Resilience Plan (PNRR). On the expenditure side, fiscal outlays dropped by 0.3% year-on-year, totaling EUR 426.7 billion. This reduction was influenced by decreased payments to certain public operators and the removal of program 369, “Amortization of State Debt Related to Covid-19,” from the 2025 Initial Budget Act. Additionally, the special Treasury accounts reported a deficit of EUR 8.7 billion in October, an improvement from the EUR 10.3 billion deficit recorded a year earlier.