03.02.202608:12:56UTC+00France Budget Deficit Narrows in December

In December 2025, France's central government reported a budget deficit of EUR 124.7 billion, showing improvement from the EUR 156.3 billion deficit recorded in the same month the previous year. Government revenues saw an increase of 8.6% compared to the previous year, totaling EUR 387.7 billion. This growth was driven by a notable surge in net tax receipts, which included increased collections from income tax, corporate tax, VAT, and other fiscal revenues. Non-tax revenues also rose, benefitting from higher income from dividends, administrative fines, and treasury withdrawals, despite a reduction in contributions from the EU due to the scheduling of co-financing under the National Recovery and Resilience Plan.

On the expenditure side, total spending experienced a slight decline of 0.2%, amounting to EUR 510.2 billion. This decrease resulted from reduced transfers to public operators and the termination of the Covid-19 debt amortization program, which counterbalanced increased expenses related to debt servicing, energy, and military operations. Furthermore, the special Treasury accounts posted a deficit of EUR 2.3 billion, showing marginal improvement compared to December 2024.