FX.co ★ France Budget Deficit Narrows in August

By the end of August 2025, France's central government budget deficit stood at EUR 157.5 billion, showing an improvement from the EUR 171.9 billion recorded in the same month the previous year. This positive change was primarily driven by a reduction in government expenditures, which fell by 0.7% to EUR 347.7 billion. Key contributors to this decline were reduced transfers to operators and the conclusion of the Covid-19 debt amortization program, despite an increase in military spending. On the revenue side, total receipts increased by 5.5% to EUR 221.7 billion. This growth was largely fueled by stronger income and corporate tax collections as well as other domestic levies; however, it was partially offset by a decline in non-tax revenues due to decreased EU co-financing inflows. Additionally, special accounts managed by the Treasury, which record the balance of targeted spending inflows and outflows such as those from local governments, registered a deficit of EUR 31.5 billion—slightly less than the EUR 31.9 billion shortfall noted in the same period last year.